UK-based aerospace group Cobham has completed its $260 million purchase of US defence communications and radar specialist Remec Defense & Space.
Cobham chief executive Allan Cook says: "Microwave, integral with network-centric warfare, is one of the fastest growing sectors in aerospace and defence," and he does not rule out further US acquisitions in the microwave sector. "We have an acquisitive background, and there is no question that we continue to be interested in attractive opportunities to expand into our chosen market niches – one of those is active and passive microwave technologies," he says.
"We always keep a close eye on the market, and if we saw an attractive proposition in that market sector, particularly in the USA, we would be interested," Cook adds.
Completion of the Remec Defense & Space deal was delayed by around a month, after parent company Remec agreed to sell its telecommunications arm to another business during the course of the transaction. "But the conditions, price and attractiveness of the deal remain the same," says Cook.
Remec will retain its management and staff and continue operations in California, Texas and Mexico, but will report directly to Chelton Microwave, part of Cobham's avionics and communications division Chelton Group. The acquisition doubles the revenue of Chelton's US microwave business and is expected to enhance earnings immediately.
Source: Flight International