UK Government to acquire Sheffield Forgemasters International Limited
The Ministry of Defence launch offer to acquire Yorkshire-based steel manufacturer.
The UK Ministry of Defence (MOD) has today launched an offer to acquire steel manufacturer Sheffield Forgemasters International Limited (SFIL), UK, allowing Government to refinance the company and secure the supply of components for the MOD’s critical existing and future UK defence programmes.
The MOD also intends to invest up to £400mln for defence critical plant, equipment and infrastructure into SFIL over the next 10 years to support defence outputs. The immediate cost of the acquisition is £2.56mln for the entire share capital of the company plus debt assumed.
SFIL is the only available manufacturer with the skills and capability to produce large scale high-integrity castings and forgings from specialist steels in an integrated facility to the highest standards required for these programmes. Furthermore, SFIL’s ownership will not prevent other UK based manufacturers bidding for MOD contracts, which will continue to be run in an open and fair competition.
The MOD has already started working closely with the company to implement best practice governance that will ensure appropriate financial oversight to secure the company’s future success, with the aim eventually to return the business to the private sector.
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