Meggitt buys Cobham's advanced composites business for $200m

(ShareCast News) - Engineering group Meggitt has agreed to acquire the advanced composites business of Cobham for $200m in cash financed from existing resources, in a deal that is expected to be immediately earnings-enhancing.The business makes engineered aerospace composite engine components and complex secondary structures via its operating facilities located in the US and UK. In 2014, it generated $81.1m in revenue.Meggitt said estimated run-rate cost synergies of approximately $3.8m are expected from 2017, with up-front cost of $4.3m.Chief executive, Stephen Young, said: "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 deal, which is subject to regulatory clearances, is expected to complete in the fourth quarter of 2015.