Ultra Electronics Holdings announced today that it has agreed to acquire Radamec Defence Systems Limited (RDS), a wholly owned subsidiary of Radamec Group, for a cash consideration of £6 million.
RDS employs approximately 70 people in Chertsey, Surrey and supplies electro optical surveillance, target tracking and weapon control systems. RDS also provides stabilised platforms and high performance military cameras, thermal imagers and laser range finders.
The company has contracts to supply its equipment to the UK Navy’s new Type 45 destroyer; the UK Army’s new Battle Group Thermal Imager and a number of export programmes.
RDS will become part of Ultra’s Information & Power Systems division and will be relocated to Ultra’s existing site at Loudwater, Buckinghamshire before the end of 2003.
The acquisition of RDS will be financed using Ultra’s existing facilities. RDS is said to have made a loss of £400,000 in 2002 on sales of £3.9 million but is expected to increase sales to more than £6 million in 2003 with an operating profit of approximately £1 million. This excludes the cost of relocation which is anticipated to be about £1 million but which is expected to yield annual savings in excess of £500,000. The order book at the end of June was £12.7 million.
‘I am very pleased that we have agreed the acquisition of RDS, a company that has an excellent position in the growing defence electronics market,’ said Dr Julian Blogh, Chief Executive, Ultra Electronics. ‘Ultra, with recently acquired SML and now with RDS, can offer a comprehensive range of surveillance and target tracking solutions.’