UK Boeing Supplier Doncasters Said to Pick Banks for US Listing

Article content(Bloomberg) — Doncasters Group, an almost 250-year-old UK metal engineering group that supplies Boeing Co., has selected banks for a US initial public offering that could value the firm at more than $4 billion, according to people familiar with the matter.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Leeds-based company has picked advisers including Morgan Stanley and Jefferies Financial Group Inc., as well as Barclays Plc and Moelis & Co., to manage the share sale, the people said. The offering could take place as soon as in 2026, the people said, asking not to be identified because discussions are private. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe firm could raise between $500 million to a $1 billion in the share sale, the people said. Doncasters makes specialist metal products such as airfoils, blades and stud welding used for airplanes, industrial gas turbines and car production, according to its website.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentNo final decisions have been made, and more banks could be added to the roster, the people said. Representatives for Doncasters, Barclays, Jefferies and Morgan Stanley declined to comment. A spokesperson for Moelis couldn’t immediately be reached for comment outside regular business hours in New York. Article contentInvestors are likely to be drawn to Doncasters IPO by two main drivers: the burgeoning AI sector, which has led to a surge in data-center development, boosting demand for power generation and customers such as Siemens Energy AG. Besides that, a shortage of parts for engines in the aerospace industry is also raising demand for the casting parts made by Doncasters with Safran SA and Boeing.Article contentThe company is one of the key forging suppliers alongside Precision Castparts, which is owned by Warren Buffett’s Berkshire Hathaway Inc., and Howmet Aerospace Inc., which is worth about $81 billion including debt and trades at roughly 35 times its earnings before interest, taxes, depreciation and amortization, according to data compiled by Bloomberg. Article contentArticle contentThe global aerospace forging industry is forecast to grow to almost $74 billion by 2034 from almost $34 billion in 2024, helped by demand for air travel and defense spending, according to a report by Research & Markets.Article contentA listing would mark a significant turnaround for Doncasters, which completed a debt restructuring in 2020 after a takeover by its lenders from the now-defunct Dubai International Capital.

Under Chief Executive Officer Mike Quinn and Non-Executive Chairman Dirkson Charles, the company has grown through investments and acquisitions, including Uni-Pol in 2022. Article contentDoncasters traces its roots to 1778, when Daniel Doncaster started the forging tools company in Sheffield, England, which soon after became the heart of the UK’s steelmaking industry. It now has about 20 locations and 3,000 employees in Europe, America and Asia who, according to its website, are “turning metals into motion.”Article contentTrending World watches as Ottawa's bullish shift on LNG puts wind at the back of two major projects Oil & Gas Is a $2.75 million portfolio enough for Halifax empty nesters to retire early?

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