Belrise enters aerospace with Chester Hall and SDM deals

Belrise Industries is entering aerospace through the acquisition of Chester Hall Precision at about 6x estimated CY25 earnings before interest, tax, depreciation and amortisation (EBITDA), and SDM at about 0.1x estimated FY27 sales. Chester Hall carries purchase consideration of £1.32 crore and adds aerospace, aero-engine and satellite machining capabilities.

Why did Belrise acquire Chester Hall Precision?

Belrise acquired Chester Hall Precision to add precision machining for aerostructures, aero-engine parts and satellite parts, alongside design and development of built-to-specification products. Chester Hall works with titanium, high-grade aluminium and other aerospace alloys, and holds AS/EN 9100 certification for aerospace and defence industries as well as ISO 9001 quality-management certification.

The presentation estimates Chester Hall’s CY25 revenue at about £1.85 crore and EBITDA at £21 lakh to £22 lakh, against disclosed purchase consideration of £1.32 crore. Belrise describes the acquisition as about 6x enterprise value to estimated CY25 EBITDA, with enterprise value calculated on a cash-free, debt-free basis and EBITDA derived from management accounts.

Chester Hall reported return on capital employed above 20%, although the presentation does not state the measurement period or capital base used for that calculation. CY25 refers to January through December 2025, meaning the reported valuation uses an estimated calendar-year EBITDA measure rather than a disclosed historical audited result.

What aerospace capabilities does Chester Hall add?

Chester Hall adds machining across aerostructures, aero-engine components and satellite parts, with specialised processing of titanium and high-grade aluminium. Its stated design and development capability is relevant because the business supplies built-to-specification products rather than only standard manufactured parts.

One Chester Hall case study covers the design and development of thrust-reverser and nacelle parts for a leading aircraft-engine original equipment manufacturer (OEM). Chester Hall says it is a single-source supplier across multiple programmes, ranks among the OEM’s top five suppliers in the UK region, and has achieved a 0.5% to 1% component scrap rate across its programmes.

A second case study concerns satellite structural parts for the space programme of the world’s largest aircraft OEM. Chester Hall says it has been the single-source supplier for that programme since inception, but the presentation does not disclose the programme’s contract value, volume, duration or future revenue contribution.

Why is SDM valued on sales rather than EBITDA?

Belrise acquired SDM for €3.5 lakh against estimated FY27 annual revenue of €30 lakh to €40 lakh, resulting in the disclosed valuation of about 0.1x estimated FY27 sales. This is a different measurement basis from Chester Hall’s approximately 6x estimated CY25 EBITDA, so the two multiples do not provide a like-for-like comparison of profitability.

The presentation does not disclose SDM’s EBITDA, enterprise value, return on capital employed or whether its FY27 revenue estimate is supported by signed orders. It identifies SDM as a specialist in machined aerostructure, aero-engine and robotic parts, using titanium and Aluminium Grade VII, which Belrise describes as the highest-strength grade of aluminium.

SDM’s displayed products include a hard-metal aero-engine part, an aluminium head-up display, an Aluminium VII component, a titanium axle and an aluminium hose. Its customer categories include the world’s largest aircraft OEM, a leading French combat-aircraft OEM, a leading French helicopter OEM and a leading French robotics OEM.

How does the Plasan Sasa alliance extend Belrise into defence?

Belrise’s alliance with Plasan Sasa is intended to manufacture land-armoured parts in India for Plasan’s global exports and introduce the ATEMM solution to the Indian defence market. Unlike the Chester Hall and SDM acquisitions, the presentation provides no alliance cost, ownership structure, revenue target or commencement date.

The alliance identifies a large Israeli armoured-vehicle OEM, a leading Indian armoured-vehicle OEM and a leading Indian defence OEM as marquee customer categories. Belrise says its fabrication scope includes soft and hard metals, including copper, brass, magnesium and aluminium, supported by high-tensile capability and metallurgy-led research and development.

Management’s defence rationale cites four conditions: India’s focus on self-reliance in critical systems, improving order visibility from private and public-sector undertaking system integrators, rising foreign-OEM investment in India and growing exports. These are management’s stated market reasons, while the presentation does not disclose defence orders, production volumes or addressable-market figures.

What changes in Belrise’s manufacturing strategy?

Belrise is combining two acquisitions with different disclosed financial profiles: Chester Hall has estimated CY25 EBITDA of £21 lakh to £22 lakh, while SDM has estimated FY27 sales of €30 lakh to €40 lakh. Both add machining of aerospace-grade materials, but Chester Hall also brings disclosed aerospace and defence quality certifications and case studies in aircraft-engine and satellite programmes.

The businesses also broaden the stated product set. Chester Hall’s examples include thrust reversers, nacelles and satellite structures; SDM lists aerostructure, aero-engine and robotic components; and the Plasan Sasa alliance targets land-armoured parts. This places specialised engineered components alongside the automotive-focused H-One India and MagFilters acquisitions presented elsewhere by Belrise.

Financial disclosure is uneven across the three initiatives. Chester Hall has estimated revenue, EBITDA, consideration, return on capital employed and an EBITDA-based valuation; SDM has estimated sales, acquisition cost and a sales-based valuation; and Plasan Sasa has no disclosed financial metrics. The available information therefore shows entry terms and capabilities, but not a combined earnings contribution or integration timetable.

Conclusion

Belrise’s aerospace and defence strategy rests on specialised machining capabilities and customer access rather than a single uniform acquisition model. Chester Hall was bought at about 6x estimated CY25 EBITDA and brings UK aerospace and space manufacturing credentials, while SDM was acquired at about 0.1x estimated FY27 sales and adds aero-engine, aerostructure and robotic-part capabilities. The Plasan Sasa alliance extends the plan to armoured components and ATEMM in India.

The next disclosed milestones are Chester Hall’s performance against estimated CY25 EBITDA of £21 lakh to £22 lakh, SDM’s estimated FY27 revenue of €30 lakh to €40 lakh, and commercial progress on Plasan Sasa’s plan to make armoured parts in India for global exports and introduce ATEMM domestically.