LONDON (Alliance News) - FTSE 100-listed aerospace and engineering group Meggitt PLC on Monday said it has struck a USD200 million deal to acquire the advanced composites unit of FTSE 250-listed aerospace and defence manufacturer Cobham PLC.
Meggitt will pay USD200 million in cash to acquire the division, which makes a range of engineering aerospace components and secondary structures. It will be integrated into Meggitt's Polymers & Composites division.
The deal will be backed by a USD300 million credit facility, Meggitt 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 single-source content and substantial growth opportunities in commercial aerospace," said Meggitt Chief Executive Stephen Young.
Cobham said the deal is in line with its strategy of "simplifying its portfolio by focusing on segments where it has scale and market leading positions".
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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