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.
A family run business in its third generation, supplying office furniture nationwide either directly or through white label websites on behalf of other retailers. Having built up an excellent reputation for the product range and service provided, the...
Indicative offers are required by noon of Tuesday 22 September 2020, with a sale concluded by no later than the close of business on Friday 25 September 2020 and therefore only parties that are able to work within this time frame should respond.
Presenting to the market a well established 2 surgery practice due to the vendors plans to reduce responsibilities. Income is derived from fee per item patients and a large capitation scheme which equates to 32% of the practice income.
Scottish accountancy firm Goldwells has expanded with the ac...
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