COBHAM REACHES AGREEMENT TO PURCHASE S-TEC

 

Cobham PLC - Acquisition

RNS Number:1448I
Cobham PLC
21 November 2007

£226
21 November 2007

COBHAM REACHES AGREEMENT TO PURCHASE S-TEC IN THE USA FOR US$38 MILLION

Cobham plc ('Cobham') is pleased to announce that it has reached agreement to purchase S-TEC Corporation from Meggitt plc for a cash consideration of US$38m on a debt and cash free basis payable on completion. The purchase is anticipated to complete before the year end, subject to regulatory approval.

S-TEC designs, certifies and manufactures autopilots for general aviation aircraft, ranging from small single-engined to light commuter aircraft. Based at Mineral Wells Airport in Texas, USA, S-TEC has a workforce of 180 people, including many skilled avionics engineers who are capable of supporting the development of Cobham products.

S-TEC is an excellent technological and market fit in the development of a Cobham cockpit of avionics. OEMs increasingly expect their avionics supplier to provide an autopilot solution, with the market moving towards the inclusion of autopilots in EFIS type displays, such as Cobham's, to reduce weight, wiring and integration costs. S-TEC also has a strong presence in the retrofit market which Cobham can leverage, and positions with many OEMs including Adam, Cirrus, Eclipse, Piper and Pilatus.

Allan Cook, Cobham Chief Executive said:
'S-TEC is an excellent technological and market fit in our development of a Cobham cockpit of avionics, with products from both companies certified together on more than 500 aircraft types.'

ENQUIRIES
Cobham plc
Allan Cook, Chief Executive +44 (0)1202 882020
Warren Tucker, Group Financial Director +44 (0)1202 882020
Julian Wais, Director of Investor Relations +44 (0)1202 857998
Julian Hellebrand, Group Director of Communications +44 (0)1202 857651

Weber Shandwick Financial
Susan Ellis/Louise Robson +44 (0)20 7067 0700

NOTES
Cobham plc is an international company engaged in the development, delivery and support of advanced aerospace and defence systems for land, sea and air platforms. The company has five technology divisions and one in the service sector that collectively specialise in the provision of components, subsystems and services that keep people safe, improve communications and enhance the performance of aerospace and defence platforms.

Cobham Avionics and Surveillance Division designs, qualifies, manufactures, certifies and supports a comprehensive range of electronic products for airborne, marine, land and special purpose applications. The division serves three principal markets: Avionics, Law Enforcement/National Security and Search and Rescue. Included in the product base are fully certified Electronic Flight Instrument Systems with complete cockpit communication/navigation and sensor capability, Cospas/SarSat certified marine, air and land Search and Rescue devices, and state-of-the-art law enforcement tracking, monitoring and surveillance equipment.

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