Cobham has agreed to purchase the Power & Control business of BAE Systems Electronics Limited for £63.75 million in cash, subject to a closing net asset adjustment. Power & Control designs, develops and manufactures high performance equipment and systems for the civil aerospace and defence markets and is highly complementary to Cobham’s activities within Flight Refuelling.
Power & Control, to be renamed FR-HiTemp Limited, has a reputation for pressure fuel boost, jettison and refuelling pumps for large commercial and military aircraft and has a substantial after-market operation. It also produces backing pumps for aero engines and helicopters. Its aircraft fuel systems equipment is in service with many aircraft types including, for the civil aircraft market, Boeing and Airbus aircraft and for the military market, Eurofighter, Boeing C-17, EH Industries EH101 and the planned Joint Strike Fighter aircraft.
The business also includes Avery Hardoll, which is known for its ground fuel handling, metering and distribution products. Power & Control’s actuation equipment and starter motors are supplied to a wide range of aircraft including Airbus, Hawk, AVRO/RJ and Harrier/AV8B.
The business operates from a 24 acre site in Titchfield, Hampshire and also has a product support operation centre in Wellington, Kansas, USA. The business currently employs approximately 750 people and in the nine month period up to 30th September 2000, the unaudited management accounts showed sales of £36.9 million and underlying profit of £4.1 million.
Net assets at completion are estimated to amount to £16.5 million. Cobham expects that the acquisition will be earnings enhancing in the first full year of acquisition.