24th Aug 2006 07:01
Meggitt PLC24 August 2006 For Immediate Release 24 August 2006 Meggitt PLC US$144m acquisition of Firearms Training Systems, Inc. Meggitt PLC ("Meggitt"), the international aerospace, defence and electronicsgroup, today announces that it has signed a definitive merger agreement toacquire Firearms Training Systems, Inc. ("FATS"). The transaction, which isconditional upon regulatory clearance in the United States, provides a goodcomplementary fit with Meggitt's existing product offering and position indefence systems. FATS is a publicly traded US company and is a leading provider of simulatedtraining solutions that improve the skills of military, law enforcement andsecurity organisations around the world. FATS provides judgemental, tactical andcombined arms training simulations covering a wide range of weapons firetraining situations, including small arms, air defence, anti-armour, vehicle/vessel mounted and air support. FATS serves US and international customers from headquarters in Suwannee,Georgia, USA with branch offices in Australia, Canada, Singapore, theNetherlands and the United Kingdom. It has sold approximately 5,200 trainingsystems in over 50 countries. For the year ended 31 March 2006, FATS reportedsales of US$78.6m, an operating profit of US$8.8m after non-recurring expensesestimated at US$3.1m and gross assets of US$53.7m. Under the terms of the agreement FATS's ordinary shareholders will receiveUS$1.08 in cash for each FATS ordinary share they own representing a premium ofapproximately 35% over the closing share price on 23 August 2006 and amountingto a total equity value of US$86.1m. Upon completion Meggitt will redeemestimated net debt and preference shares at closing of US$57.9m equating to atotal enterprise value of US$144m. The consideration will be funded fromMeggitt's existing resources and the transaction is expected to complete in thefourth quarter of 2006. On completion FATS will be incorporated into Meggitt Defence Systems. FATS willsignificantly increase this division's product range, improve access to exportmarkets and provide synergy benefits primarily through integration withMeggitt's live fire training systems business. Commenting on the acquisition Terry Twigger, Chief Executive of Meggitt said: "Today's announcement is further evidence of Meggitt delivering on our statedstrategy of acquiring complementary businesses designed to strengthen our marketposition or expand our technology position." "FATS's leading position in the rapidly growing market for simulation trainingsignificantly enhances Meggitt's existing live fire training portfolio and weare very excited about the prospects for the combined businesses." Contact: Meggitt PLC +44 (0)1202 597 597Terry Twigger, Group Chief ExecutiveStephen Young, Group Finance Director Buchanan Communications +44 (0)20 7466 5000Charles RylandJeremy Garcia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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