UK-based Meggitt PLC will buy the advanced composites businesses of Cobham for $200 million. Cobham works on the development and production of highly engineered aerospace composite engine components (spinners, internal multistage components, exhaust flaps), radomes (C4I and defensive measures radomes, with a growing position in civil radomes) and complex secondary structures (air-to-air refueling, structural munitions components). Cobham operates facilities in San Diego, CA, US; Baltimore, MD, US; and in the UK (Shepshed, Leicestershire and Stevenage, Hertfordshire). The company's revenue in 2014 was $81.1 million. The purchase price implies a multiple of 10x 2016e EBITDA.
"The acquisition represents a major step in strengthening our composites capability,” said Stephen Young, group chief executive of Meggitt. "The acquisition will enhance our materials and manufacturing technologies and product offerings in complex composites, which are key to next generation aircraft components."