US Private Equity Firm Acquires Cobham for $5 Billion
US-based private equity firm, Advent International has acquired UK’s leading aerospace and defense company, Cobham plc for a total sum of USD $5 billion. Advent has agreed on offering 165 pounds in cash for each Cobham share representing a 50% premium to the three-month average price. In lieu of the acquisition deal, shares in Cobham jumped 35% to just above the offer price, the highest since March 2016. The deal will be part funded by about 2.5 billion pounds of debt.
Cobham, a leading provider of electronic warfare systems and communications for military vehicles, had a string of profit warnings in 2016 and 2017, forcing it to raise cash from shareholders. The company had then embarked on a turnaround strategy two and half years ago, focusing on improving the company’s financial and operating performance. According to company CEO, David Lockwood, the offer now reflects the potential for future growth and improving performance and is an endorsement of the company’s turnaround strategy and hard working staff. Click here to read more.