Acquisition
Meggitt PLC (Meggitt or the Group), the leading international engineering group specialising in aerospace, defence and energy markets, has acquired Precision Engine Controls Corporation (PECC) from United Technologies Corporation for a cash consideration of US$44.2 million, funded from existing resources.
The purchase price equates to a multiple of approximately 8.5x adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the year ended 31 December 2014 and is expected to be immediately accretive to Underlying Earnings Per Share (EPS).
PECC is a leading supplier of actuation systems and fuel metering valves to manufacturers of small-frame gas turbines used predominantly in the oil and gas and power generation industries. PECC’s products are complementary to Meggitt’s existing valve technology in the aero-derivative gas turbine market and expand our range of actuation capabilities.
PECC’s substantial level of intellectual property and sole-source market positions conform to Meggitt’s strategy of investing in highly-engineered components and sub-systems for use in extreme environments in its core aerospace, defence and energy markets.
Stephen Young, Chief Executive of Meggitt commented: The acquisition of PECC is a key step in broadening our industrial valve capability. The very strong product and customer portfolio and the exceptional calibre of the employee base make the business a great fit with Meggitt.
PECC, headquartered in San Diego, California, employs 78 people and will be integrated into the Meggitt Control Systems division.
ENDS
For further information please contact:
Meggitt PLC
Richard Cashin, Investor Relations – Tel: 01202 597597
Fiona Greig, Corporate Communications
Buchanan
Charles Ryland or Richard Oldworth – Tel: 0207 466 5000
Meggitt PLC
About Meggitt PLC Headquartered in the United Kingdom, Meggitt PLC is an international group operating in North America, Europe and Asia. Known for its specialised extreme environment engineering, Meggitt is a world leader in aerospace, defence and energy, employing nearly 11,000 people at more than 40 manufacturing facilities and regional offices worldwide. www.meggitt.com