Wed, 21 Dec 2016 | BUSINESS SALE
Aerospace specialist Meggitt has sold its drone targets division to defence tech firm Qinetiq for £57.5 million as it looks to target “attractive” international markets and boost its pension plan.
Target Systems manufactures drones and other aerial, land and naval targets that militaries use to shoot down in training sessions.
Qinetiq will acquire the business, based in the UK and Canada, on a cash- and debt-free basis. The division is expected to post revenues of £28 million and £5.5 million in profit in 2016.
Meggitt will channel £10.2 million from the deal to reduce a deficit in its pension plan. The company said the sale was consistent with its strategy of focusing on “businesses of scale in attractive markets where our leading positions offer greater potential for growth and operational efficiencies".
Under the deal Target Systems will form part of Qinetiq’s new international business unit and will be reported within Qinetiq’s Global Products division.
Qinetiq’s chief executive officer Steve Wadey said: “This acquisition accelerates the delivery of our strategic priorities to drive growth of our core capabilities in international markets, and to modernise and strengthen our ability to deliver world-class test and evaluation services.
“Meggitt Target Systems is a distinctive business with a strong management team and employees in Canada and the UK who are experts in the development and delivery of unmanned target systems and services. We know the business well having worked together for the past decade.”
Find the latest engineering and technology businesses for sale.
This established business specialises in the maintenance of heating, cooling, ventilation and refrigeration in industrial, commercial and domestic markets providing a high volume of repeat business from regular call cycles.
LEASEHOLD
The Business sells a variety of accessories for the fitness market through Amazon, ebay and its own website. In the financial year 2019-2020 the Business achieved a turnover of £6 million and is currently on track to do sales of £10 million in the cu...
WEB-BASED
Service offering includes, planning and design, installation and project management, service and maintenance and consultant design. The business also offers retail refrigeration units, air conditioning and licensed trade catering equipment. Benefits...
LEASEHOLD
|
04
|
|
Dec
|
BiFab falls into administration after Scottish government withdraws support | ADMINISTRATION
Fife-based renewables engineering firm Burntisland Fabricati...
|
03
|
|
Dec
|
SDI Group acquires lab equipment firm in £5.8 million deal | BUSINESS SALE
Acquisitive science and technology firm SDI Group has bought...
|
02
|
|
Dec
|
Bonmarché falls into administration | ADMINISTRATION
Fashion retailer Bonmarché has fallen into administra...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources