US private equity firm Advent International won its battle to buy Britain’s Cobham for $5 billion on Monday (September 26), taking advantage of the weak pound to pounce on the defense and aerospace group that pioneered air-to-air refueling.
Chairman Jamie Pike told a shareholder meeting the management had “pushed as hard as they could push” and engaged in some “arm wrestling” before finally settling on a price that marked a 50% premium to the three-month average share price before the deal was announced.
Cobham, based in Wimborne Minster, south-west England, is the latest European company to be bought by a private equity firm seeking a home for their bumper cash balances.
Cobham, which employs 10,000 people to make its air-to-air refueling system and communications equipment for military vehicles, has a storied history but has faced difficulties in recent years.
Full Content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
...THIS ARTICLE IS NOT AVAILABLE FOR IP ADDRESS 216.73.216.190
Please verify email or join us
to access premium content!
