Canadian manufacturer of aerospace systems and components Magellan Aerospace has completed the acquisition of UK-based John Huddleston Engineering Limited (JHE), a precision machined aerospace components developer.
A Magellan spokeswoman would not…
Canadian manufacturer of aerospace systems and components Magellan Aerospace has completed the acquisition of UK-based John Huddleston Engineering Limited (JHE), a precision machined aerospace components developer.
A Magellan spokeswoman would not disclose the consideration or its composition but said that company planned to do so in future financial statements.
The transaction, which was funded out of existing working capital, expands Magellan’s capabilities both vertically and geographically. JHE is currently a strategic supplier to Magellan of precision machined structural components, while its pan-European presence bolsters Magellan’s predominantly UK-focused operations in the region.
Commenting on the purchase, James Butyniec, president and CEO of Magellan said, “This acquisition is part of Magellan’s global growth strategy to invest in opportunities that complement our business and strengthen Magellan’s core manufacturing operations. The JHE acquisition provides additional capacity and engineering resources to enable us to support the growth in key customer programs.”
The aerospace sector continues to be the key growth driver for Magellan. In its H1 2012 results, the company reported a 9.6% increase in EBITDA to C$45.1m on flat revenues. This was caused by a 10.3% rise in revenues (to C$329m) in the Aerospace segment which counteracted the 53% decline in revenues (to $27.3m) from Magellan’s power generation project business.
Within this aerospace business, Magellan has a growing space unit which has focuses on small LEO satellite buses. The company is shortly due to complete the critical design review for the three satellite RADARSAT constellation contract it has with MacDonald, Dettwiler and Associates. Under that deal, Magellan will manufacture, assemble and test the satellites from early 2013 to 2015.
In order to increase its space sector presence, Magellan is also contemplating making bolt-on acquisitions. “Magellan reviews all commercial space opportunities and if the right opportunity were to present, would consider acting upon it,” the spokeswoman said.
