LONDON Cobham, the UK based supplier of specialised equipment for the aerospace, defence, homeland security, communications and search and rescue markets, has expanded its microwave assets with the separate purchases of Remec Defense & Space and the microwave and diodes division of Temex.
The US$260 million cash acquisition of Remec Defense will double Cobham subsidiary Chelton's US microwave business. It adds the ability to supply integrated microwave assemblies (IMAs) and sub systems for EW, radar and communications. It extends Chelton’s passive, microwave sub systems and components capability and provided participation in a number of top US defence programmes and platforms including: F-16, F/A-18, F/A-22, F-35 (Joint Strike Fighter), the Joint Common Missile, AMRAAM, AARGM, Tomahawk and Sea Sparrow.
The acquisition, which is conditional on US regulatory approvals and the approval of REMEC shareholders, adds a company which has had a compound annual revenue growth over the last two years of 15% which is expected to continue. For the year ended 31 January 2004, Remec Defense generated operating profits of US$14.7million on revenues of US$82.1million.
Allan Cook, chief executive of Cobham, said, “Microwave is a fast growing sector in network-centric warfare as it is at the heart of the infrastructure, data link, communications and surveillance systems used on all air, ground, ship and space platforms. This important and exciting acquisition will bring new and complementary capabilities to our existing highly successful Chelton microwave business.”
Remec Defense has its headquarters and manufacturing plant in a 161,000 sq ft site in San Diego, California, US and also has a 11,000 sq ft manufacturing plant in Tijuana, Mexico. It employs some 1,100 people. The existing workforce and management are expected to remain in place.
Chelton has also acquired the microwave and diodes division of Temex for a €7.5million in cash. The main activity of the acquired business is the design and manufacture of ferrite and cavity components and the development and production of diodes principally for switching, alternator and multiplier applications, for use in military, space and telecom markets. Temex is the only European manufacturer of certain types of p-i-n diodes that are utilised extensively in Chelton products.
The business is located at two ISO 9001 certified sites in northern and southern Paris, France. The business will be renamed Chelton Telecom and Microwave SAS and will employ 145 people.