UK's Senior in advanced talks for sale of aerostructures business

Writes through with CEO comments on sale and tariffs, details on units, outlook and shares

By Raechel Thankam Job and Pushkala Aripaka

March 3 (Reuters) - British engineering firm Senior Plc SNR.L is in advanced negotiations with a small number of parties for the sale of its aerostructures business, which is projected to turn profitable this year, the company said on Monday.

Senior has been considering selling the business for years after key supplier Boeing BA.N cut production of its best-selling 737 MAX planes and a dip in demand during the pandemic hurt operations and forced Senior to look at a leaner structure.

It, however, has benefited from its own measures to cut costs, a recovery in travel to pre-pandemic levels, somewhat stabilising production and supply at top customers, which include Airbus AIR.PA, and improved contract pricing.

"We are focused on completing the sale process and maximising value for shareholders and will update the market in due course," CEO David Squires said.

Shares in Senior dropped as much as 5% before paring losses by 0949 GMT to trade 1% lower.

Squires told Reuters that the company could not disclose names of the potential buyers because discussions were still confidential.

Aerostructures made 272.4 million pounds ($344 million) in revenue for 2024, or about 28% of overall sales.

It is part of Senior's biggest business, aerospace, which builds and supplies aeroplane parts from ducts and structural supports, to hydraulics, sensors, and temperature and pressure controls.

Companies globally are also scrambling to adapt to growing trade tensions after the U.S. administration's raft of tariffs on imports from China, Mexico and Canada, and soon possibly from the European Union.

Senior is closely monitoring developments, but it has some protection from tariffs as the bulk of its products are built within the regions to which it sells, Squires said.

The company forecast "good growth" overall in 2025, but flagged some softness in North America and Germany at its Flexionics unit where performance this year is expected to be broadly similar to last year when sales fell nearly 6%.

($1 = 0.7910 pounds)