Shares in distribution company Umeco rose by 8% today after reports that it was planning to sell the aerospace supplier Pattonair for over £200 million. Analysts say that such a disposal would transform Umeco’s balance sheet from a £70 million net debt position to one with a healthy surplus. Umeco is believed to have hired NM Rothschild to sell the Derby-based company. Pattonair recorded pre-tax profits of £2.1 million in the year to 31 March 2010 on revenues of £33.6 million.
Umeco shares have lagged of late driven lower by problems at Rolls Ryce and Boeing, the company will be hoping that cancelling debt will show.
A statement yesterday to markets simply said: “Umeco notes the recent speculation in relation to a possible sale of Pattonair, its Supply Chain business. The Board can confirm that it is in non-exclusive discussions which may or may not lead to a sale of Pattonair. No final terms are agreed and any such disposal would be subject, inter alia, to shareholder approval under the Listing Rules”.