Shaanxi Ligeance Mineral Resources on its acquisition of Gardner Aerospace

Steen Associates is exclusive financial adviser to Shaanxi Ligeance Mineral Resources ("SLMR") on its acquisition of Gardner Aerospace, the UK based manufacturer of metallic detailed parts for commercial aerospace applications.

Gardner is a European leader in the manufacture of aerospace parts supplied to aerospace OEMs – notably Airbus and other airframe and engine manufacturers. The business is headquartered in Derby, UK, and has additional manufacturing locations across Europe and in India, employing 1500 people. Gardner employs 690 staff in the UK. The company has revenues of approximately £150m and operating margins of around 20%, and is well positioned on existing Airbus platforms including the A320, A330, and A350.

SLMR, which is listed on the Shanghai stock exchange with a market capitalisation of £1.4bn, is an aerospace and mining corporation. SLMR mining division owns a number of rhenium mines in Northern Huashan, with proven reserves equal to 7% of the global market. Rhenium is a rare mineral used in the production of superalloys that are vital in the manufacture of aerospace components. Both SLMR and CAST have close relationships with the regional and national Chinese authorities.

The transaction is conditional on various regulatory approvals and is expected to close during the first part of 2017.