Business
Two acquisitions in the Aerospace & Defence sector
Two acquisitions in the Aerospace & Defence sector.
About this update from Gooch & Housego Plc
[{"type":"text","content":"\n \nRNS Number : 7482D Gooch & Housego PLC 11 July 2016 \n\n\n\n\n\nFor immediate release\n\n\n11 July 2016\n\n\n\n\n \n \n\n\n\n\n \n\n\n \n\n\n\n\nGooch & Housego PLC\n(\"G&H\" or the \"Company\")\n \nTwo acquisitions in the Aerospace & Defence sector\n \n \nGooch & Housego PLC (AIM: GHH), the specialist manufacturer of optical components & systems, announces that it has completed two acquisitions that expand the Company's presence in the Aerospace & Defence sector.\n \nKent Periscopes\nG&H has acquired the entire issued share capital of Kent Periscopes Ltd (\"Kent\"), a UK based specialist supplier of periscopes, vehicle sights and related equipment for land based Armoured Fighting Vehicles (AFVs).\n \nKent was founded in 2005 and has established itself as a market leading key supplier on major vehicle programmes to blue-chip military manufacturers. It is based in St Asaph, North Wales, owns key intellectual property and has capabilities in product design, assembly and sales and marketing. Kent also has a well established and cost-effective supply chain, which includes the option to outsource sub-assembly and complete 'end-product' production.\n \nKent has a proven capability in providing system level optical products for use in harsh environments to an impressive international customer list. It has a strong market position and a committed, long-term order book in excess of £20 million, which helps to underpin future revenues. \n \nThe acquisition of Kent is aligned with G&H's strategic objectives of moving up the value chain and further diversification in the Aerospace & Defence sector. Potential synergies include leveraging G&H's greater global reach through our sales and business development teams and taking advantage of our expertise in precision optics and specialist coatings. \n \nThe consideration payable by G&H will be up to £9.5 million, net of cash remaining in the business. This comprises £7.0 million initial cash consideration, funded from existing cash and debt facilities, paid on completion and a deferred contingent consideration of up to £2.5 million, payable in cash and a small number of shares, based upon the performance of the business over the next two years.\n \nAlfaligh...