11th Jul 2016 08:18
LONDON (Alliance News) - Specialist optical components and systems manufacturer Gooch & Housego PLC on Monday said it has expanded its presence in the aerospace and defence sector through the acquisition of two companies.
G&H bought UK-based Kent Periscopes for GBP9.5 million, comprising an initial consideration of GBP7.0 million in cash and a deferred consideration of GBP2.5 million payable in cash and shares based upon the performance of the business over the next two years. The acquisition will be funded through existing cash and debt facilities.
Kent Periscopes supplies periscopes, vehicle sights and related equipment for land-based armoured fighting vehicles, and has a committed long-term order book in excess of GBP20 million, G&H said.
G&H also bought Wisconsin, US-based Alfalight Inc for USD1.3 million in cash, funded from existing cash and debt facilities at completion.
Alfalight manufactures high-reliability, laser-based, electro-optic systems for defence and security applications, and will be incorporated into G&H's Boston, Massachusetts business unit.
The historic combined annual revenue of both Kent Periscopes and Alfalight is GBP9 million. Both acquisitions are expected to be earnings enhancing in the first full year of ownership, G&H said.
"These acquisitions meet our strategic aims of moving up the value chain and diversification through increasing our footprint in the aerospace & defence sector," Chief Executive Mark Webster said in a statement.
"Kent is a well established business with an impressive list of international blue-chip customers. We believe that G&H will enable this business to fulfil its true potential through leveraging our greater global reach and our complementary technological capabilities. Alfalight's expertise in diode lasers in the US defence sector is an excellent fit for our Boston business and will enable it to establish a critical mass in this marketplace," Webster added.
Shares in G&H were trading up 1.4% at 857.00 pence on Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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