UK-based aerospace and defence technology firm Cobham has acquired satellite communication antenna systems developer Trivec-Avant for up to US$144m.
Cobham will pay an initial US$126m on a debt and cash free basis on completion of the deal. An…
UK-based aerospace and defence technology firm Cobham has acquired satellite communication antenna systems developer Trivec-Avant for up to US$144m.
Cobham will pay an initial US$126m on a debt and cash free basis on completion of the deal. An additional US$18m is payable between 2013 and 2014, contingent on future performance. The deal value represents a multiple of approximately 4.5x 2010 EBITDA and Cobham stated that the acquisition will be immediately earnings enhancing and will cover its cost of capital in the first year of ownership.
Following a strategic review, California-based Trivec-Avant initiated a sales process earlier this year, hiring McGladrey Capital Markets to find a buyer.
Paul Weisbrich, senior managing director of McGladrey Capital Markets’ Aerospace, Defense and Government Services Group, said: “This transaction underscores that the aerospace and defense base in Southern California remains attractive to foreign buyers. This is the sixth acquisition Cobham has made in the region.”
Trivec-Avant specialises in Ultra High Frequency and steerable antennas. The company has an established relationship as a significant provider of antenna technology for the US military and is a Foreign Military Sales (FMS) exporter. For the year ended 31 December 2010, Trivec generated EBITDA of US$22.6m and had gross assets, excluding debt and cash, of US$11.7m.
Cobham stated that the acquisition is in line with its strategy of making bolt-on acquisitions to build scale in its target markets. In this case, Trivec’s technology, product range and customer base are highly complementary to Cobham’s Antenna Systems strategic business unit and will be merged into this operation.
The acquisition is pending Hart-Scott-Rodino and CFIUS approval and is expected to be completed during the fourth quarter of 2011.
