UK Senior Plans £200M Aerostructures Business Sale to Sullivan Street

Senior plc, a British engineering firm, has agreed to sell its Aerostructures business to private equity firm Sullivan Street Partners for up to £200 million, including an initial payment of £150 million and a possible additional £50 million contingent on 2025 performance. The sale aligns with Senior's strategy to focus on its core fluid conveyance and thermal management operations, which serve aerospace, land vehicle, and power industries. Proceeds from the sale will be used to reduce net debt and fund a £40 million share buyback program, with the company expecting improved profitability, stronger margins, and better shareholder returns. Senior's Aerostructures division, which manufactures aircraft structural components and has faced challenges including production issues at Boeing and pandemic impacts, is anticipated to turn profitable this year. Following the transaction, Senior will be positioned as a more focused, resilient business with opportunities to benefit from global defense spending and potential future acquisitions. The company's shares rose significantly on the news, reflecting investor confidence in the strategic refocus and financial benefits of the deal.