1st Oct 2014 07:51
LONDON (Alliance News) - Cohort PLC said Wednesday it has acquired defence and offshore energy systems and in-service support provider J+S Ltd for GBP12 million cash from its shareholders.
Cohort will fund the acquisition from its existing resources, it said. The acquisition is expected to immediately add to earnings.
J+S expects to see an operating profit of GBP1.5 million in the year to Tuesday, on revenue of GBP14 million. Its order book at the end of September is expected to be over GBP33 million.
Cohort said the acquisition provides it with new capabilities in defence and offshore energy. It will integrate the acquired business into its surveillance, software and hardware development business SEA, which it expects to produce costs savings and benefits.
J+S has defence products including sonar systems, torpedo launchers and a range of other equipment. Its production capabilities will help SEA meet its growing need for submarine communication and other system manufacture. Additionally, it will help extend SEA's international reach.
In July Cohort took a majority stake in electronic communications and surveillance technology supplier Marlborough Communications Holdings Ltd.
"We continue to look for attractive acquisition opportunities while focusing on integrating both businesses and delivering the synergies and growth we have identified," said Chief Executive Officer Andrew Thomis in a statement.
Shares in Cohort are trading up 4.5% at 210.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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