International engineering group Meggitt has signed a deal to acquire Cobham’s advanced composites businesses for $200m in cash.
Cobham’s advanced composites businesses produce engineered composite engine components, radomes, and structures for commercial aerospace and defence markets.
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The businesses operate four facilities across the US and UK, with a workforce of 487. Last year, these units generated revenues of $81.1m.
This acquisition will expand the product offerings of Meggitt’s complex composites, and the company plans to operate the acquired units as part of its Meggitt Polymers & Composites (MPC) division.
Meggitt CEO Stephen Young said: "The acquisition represents a major step in strengthening our composites capability.
"The advanced composites businesses of Cobham are highly complementary to Meggitt’s business model, with strong technology positions, a significant level of sole-source content and substantial growth opportunities in commercial aerospace.
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By GlobalData"The acquisition will enhance our materials and manufacturing technologies and product offerings in complex composites, which are key to next-generation aircraft components."
The acquired businesses will help MPC strengthen its technical capability and intellectual property portfolio.
Subject to regulatory approvals and other closing conditions, the transaction is expected to be concluded in the fourth quarter of the year.
With this transaction, Meggitt expects to record run-rate cost synergies of around $3.8m from 2017, with up-front cost of $4.3m.
