WORLD-CLASS Dorset aerospace group Cobham has announced the largest acquisition in its history - the $260 million (£134.4 million) cash purchase of US-based Remec Defense & Space Inc.
Buying Remec doubles Cobham's Chelton microwave military systems business in the US.
Remec specialises in integrated microwave assemblies and sub-systems for electronic warfare, radar and communications. It is involved in a series of top US defence programmes and platforms including the F-16, F/A-18, F/A-22, F-35 (Joint Strike Fighter) plus AMRAAM anti-aircraft and Tomahawk cruise missiles. The acquisition doubles the revenues of Cobham's Chelton microwave business in the US.
Cobham chief executive Allan Cook said: "We have never done a bigger acquisition than this. Even if it had not been the biggest, it's not about critical mass or size, it's about how we see the future developing.
"Microwave is a fast-growing sector in network-centric warfare as it is at the heart of the infrastructure, data link, communications and surveillance systems used on all air, ground, ship and space platforms."
Cobham's Chelton microwave operations now account for annual revenues of £500 million, around half the group's business.
Chelton's revenue was just over £10 million when Cobham first bought the company back in 1989.
The Remec acquisition is conditional on US regulatory approvals and the approval of Remec shareholders.
Remec Defense has its HQ and manufacturing plant at a 161,000sq ft site in San Diego, California. It also has a 11,000sq ft manufacturing plant in Tijuana, Mexico.
First published: December 22
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