MB Aerospace Holdings Ltd, one of the UK's leading aerospace companies, has announced the sale of its energy services division, MBAe Oil & Gas Ltd, in a strategic move designed to focus the group on supply chain management services for global aerospace and defence original equipment manufacturers.

The company, which has operations in Motherwell, Derby and Burnley, has now completed the sale of its two non-core subsidiaries, MB Faber Ltd (in August 2009) and MBAe Oil & Gas Ltd, as part of its strategy to focus on its key aerospace business.

The stand-alone subsidiary, MBAe Oil & Gas Ltd (formerly Wellclad and Roberts Pipeline Machining) was sold for £8million to Glacier Energy Services Holdings Limited, a new company formed following investment from Maven Capital, Simmons Parallel Energy Fund and the Clydesdale Bank.

Glacier Energy Services will be headquartered in Aberdeen with former managing director, Dave Sturrock and non-executive director, Scott Martin, assuming responsibilities of chief executive and chairman, respectively.

Functional leaders of the two MBAe Oil & Gas operations, Norman Roberts, technical director, and Robert Hutcheson, operations director, are also joining Glacier Energy Services as part of the new management team.

Craig Gallagher, chief executive of MB Aerospace Holdings Ltd, said: "The sale of this non-core operation represents excellent value for our shareholders at MB Aerospace Holdings and allows us to re-invest the proceeds back into our core aerospace business.

"As an established manufacturing business, MBAe Oil & Gas Ltd, has traditionally had good technical overlap with our core aerospace activities; however, the time has now come for the business to realise its organic growth potential and to enlarge its offering to the developing energy markets.

Dave Sturrock, chief executive officer of Glacier Energy Services, said: "Our vision is to provide customers with world-class technologies and exceptional service. Both the acquired companies, based in Scotland's manufacturing heartland, boast a proven track-record and a solid oil and gas customer base. Glacier will add and enhance their existing products and services through organic growth and strategic acquisitions.

"From our headquarters in Aberdeen, we will be able to promote these technologies to the international oil and gas market, capitalising on the management team's oil and gas knowledge, expertise and contacts and the strong resurgence in the UK manufacturing sector."

The disposal of MBAe Oil & Gas Ltd provides MB Aerospace with a strong financial position from which to invest in its aftermarket and late-life platform businesses across three key areas:

• acquisitions to broaden its customer base and geographic footprint
• capital expenditure to add capability to the group's manufacturing operations whilst reducing the need to out-source special processes
• investment in the working capital of all its business units to support contract wins and rapid organic growth

Mr Gallagher, continued: "Despite challenging market conditions MB Aerospace has achieved growth in all the major areas of the core business throughout 2010 and through the first quarter of this year.

"Whilst near term, the market has been impacted by the global economic cycle, the long-term fundamentals of the aerospace industry remain sound and we are investing now to secure our ability to compete for the major commercial opportunities arising over the next decade and beyond."

Notes to editors:

MB Aerospace Holdings Ltd.

Headquartered in Motherwell, Lanarkshire MB Aerospace Holdings Ltd. specialises in supply chain management, manufacture, integration and the assembly of defence and commercial aerospace systems and components. Principal customers are Boeing and Rolls-Royce.

For further information please visit www.mbaerospace.co.uk

Issued by The BIG Partnership on behalf of MB Aerospace Holdings Ltd

For further information please contact:

Michelle Holton, The BIG Partnership
Tel: 0141 333 9585 / 07957 870 514