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US: Advent wins $5B battle for UK’s Cobham

 |  September 16, 2019

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

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