LONDON Teledyne Ltd, a subsidiary of Teledyne Technologies Inc., is to acquire Filtronic plc's defense electronics business for around £13.0 million (approximately $25.7 million).
The division had sales of £15.5million (about $ 30million) and an operating profit of £1.3million (about $ 2.5 million) in the financial year ended May 31, 2008.
This business, principally based in Shipley, England with additional facilities in Australia, provides customized microwave subassemblies and integrated subsystems to the global defense industry. The deal is expected to be completed before the end of August 2008.
The business designs and manufactures a range of microwave products for radar, electronic support measures and electronic counter measures systems used to protect modern military platforms from hostile threats.It supplies complex microwave receiver front-end subsystems, including instantaneous frequency measurement (IFM) based subsystems and customized multifunction assemblies.
“This acquisition, which will add expertise in receiver subsystems and digital signal processing, is consistent with Teledyne's strategy to provide more highly integrated microwave subsystems to our defense customers,” said Robert Mehrabian, chairman, president and chief executive officer of Teledyne.
This is the second acquisition by Teledyne from Filtronic PLC. In December 2003, Teledyne acquired certain assets of the U.S.-based Filtronic Solid State business for $12.0 million.
Filtronic will now concentrate on its remaining Point to Point (PTP) business which designs and manufactures customised microwave electronic sub assembly components that are integrated by OEMs into point to point radios. This business recorded 79 percent year on year growth in revenue of £40.1 and 176 percent growth in operating profit to £6.3million.