9th Mar 2006 07:02
Cobham PLC09 March 2006 COBHAM ANNOUNCES DISPOSAL OF COUNTERMEASURES BUSINESSES Cobham is pleased to announce that in accordance with its strategy to focus oncore technologies in rapidly growing markets, the Group has reached agreement tosell its two countermeasures businesses, Wallop Defence Systems Limited (WDSL)and FR Countermeasures Inc (FRC), to Esterline Technologies Inc (Esterline) ofthe United States. The maximum total consideration is £43.75m, in cash, of which £10m is contingentupon the future performance of WDSL (the outcome of which is expected to befinalised during 2006). The sale of WDSL remains subject to the approval of theGerman competition authorities and is expected to be completed by April 2006. Cobham also announces that it has sold FR Countermeasures Inc. of Milan,Tennessee, Cobham's US countermeasures business to Esterline. The considerationis £3.2m*, comprising of £0.6m in cash and the assumption by Esterline ofcertain liabilities of FRC. A further £2.9m* becomes payable once the sale ofWDSL is completed. Allan Cook, Cobham Chief Executive, said,"The sale of these businesses is another milestone in the execution of ourstrategy. We will use the proceeds to fund organic and acquisitive growth inhigh technology markets where we have competitive advantage and value creationopportunities." * translated at an exchange rate of USD1.73/£1 NOTESCobham plc - with five technology divisions and one in a service sector, theGroup designs and manufactures equipment, specialised systems and components forthe aerospace, defence, communications, law enforcement and national securitymarkets, and operates, maintains and modifies aircraft, particularly in relationto special mission flight operations. ENQUIRIESCobham plcAllan Cook, Chief Executive +44 (0)1202 882 020Warren Tucker, Group Financial Director Weber Shandwick Square MileSusan Ellis / Kirsty Raper +44 (0)20 7067 0746 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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