Aerospace company Meggitt unveiled a £251m placing to help fund the $685m (£439m) acquisition of Pacific Scientific Aerospace (PSA), a diversified defence, aerospace and energy company, from Danaher corporation, a move that shoots Meggitt higher up the FTSE rankings. The acquisition is priced at almost two times PSA's annual sales but should give Meggitt's earnings an immediate boost.
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PSA is a components manufacturer and supplier with a similar balance of sales to civil aerospace and defence customers (57 per cent and 43 per cent) as Meggitt. It adds some useful low-cost manufacturing facilities in Vietnam and Mexico, as well as new expertise in fire suppression on aircraft.
