Dorset-based aerospace and defence manufacturer Cobham has been acquired by Boston-headquartered Advent International for £4bn.
The Advent International board unanimously agreed on the purchase.
Cobham’s shareholders will be given the opportunity to vote on the acquisition in September at their annual meeting.
The deal expected to close by the end of 2019, subject to regulatory approvals in the UK, Australia, France, and Finland.
Cobham employs around 10,000 people and has customers and partners in over 100 countries. It has specialist capabilities in wireless, audio, video and data communications, including satellite communications, defence electronics, air-to-air refuelling, aviation services, life support and mission equipment markets.
Commenting on the acquisition, Jamie Pike, Chairman of the board of Cobham, said: “Cobham has leading positions in a number of attractive technology markets, with capabilities and know-how that are well aligned with our customers’ priorities. The Cobham management team’s turnaround actions over the last two and half years have begun to improve our performance, which is reflected in our 2019 interim results announced today. We believe that Advent would provide a complementary partner for Cobham’s stakeholders.
The Cobham Board is unanimously recommending the offer from Advent as it represents an opportunity for shareholders to realise their investment in Cobham in cash in the near term. The offer represents a 50.3% premium to the average share price over the last three months.”
David Lockwood, CEO of Cobham added: “We have worked intensively over the last two and half years to focus on our customers and our financial and operating performance, and these fundamentals, along with the investment in the business Advent can provide, will enable us to leverage the quality of our products and services. Most of all, this offer reflects the potential for future growth and improving performance, and is an endorsement of our turnaround strategy and our hard working people.”
Commenting on the Acquisition, Shonnel Malani, a Managing Director of Advent International plc, said: “We are pleased the Board of Cobham has agreed unanimously to recommend the Acquisition of Cobham by Advent. We strongly believe in the importance and potential of Cobham’s businesses and look forward to bringing our long track record of successful stewardship of companies to ensure that Cobham flourishes under our ownership.”