Meggitt PLC, an international engineering group specialising in aerospace, defence and energy markets, has acquired the advanced composites businesses of Cobham plc for US$200 million in cash, financed from existing resources.
Cobham’s composite businesses are global leaders in the design, development and production of highly engineered aerospace composite engine components (spinners, internal multi-stage components, exhaust flaps), radomes (C4I and defensive measures radomes, with a growing position in civil radomes), and complex secondary structures (air-to-air refuelling, structural munitions components).
The businesses will be integrated into Meggitt Polymers & Composites (MPC), a division of Meggitt PLC.
Cobham has operating facilities are located in the US (San Diego, California and Baltimore, Maryland) and in the UK (Shepshed, Leicestershire and Stevenage, Hertfordshire).
The Businesses revenues in 2014 were US$81.1m.
According to Meggit, “The business fit well into Meggitt’s business model, with strong technologies and a significant level of single-source content. The acquisition also represents an excellent strategic and complementary fit with existing Group capabilities.”
Chief executive of Meggitt, Stephen Young commented: “The acquisition represents a major step in strengthening our composites capability.
“The advanced composites businesses of Cobham plc are highly complementary to Meggitt’s business model, with strong technology positions, a significant level of single-source content and substantial growth opportunities in commercial aerospace.
“The acquisition will enhance our materials and manufacturing technologies and product offerings in complex composites, which are key to next generation aircraft components.
“We look forward to welcoming the employees of the advanced composites businesses into our organisation.”
The purchase, which is conditional on regulatory clearances including CFIUS and anti-trust, and other customary conditions, is expected to complete before the end of 2015.