Meg­gitt ac­quires PECC from United Tech

SP's MAI - - CORPORATE NEWS -

Meg­gitt plc, the lead­ing in­ter­na­tional en­gi­neer­ing group spe­cial­is­ing in aero­space, de­fence and en­ergy mar­kets, has ac­quired Pre­ci­sion En­gine Con­trols Cor­po­ra­tion (PECC) from United Tech­nolo­gies Cor­po­ra­tion for a cash con­sid­er­a­tion of $44.2 mil­lion, funded from ex­ist­ing re­sources.

The pur­chase price equates to a mul­ti­ple of ap­prox­i­mately 8.5x ad­justed earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion (EBITDA) for the year ended De­cem­ber 31, 2014, and is ex­pected to be im­me­di­ately ac­cre­tive to un­der­ly­ing earn­ings per share (EPS).

PECC is a lead­ing sup­plier of ac­tu­a­tion sys­tems and fuel me­ter­ing valves to man­u­fac­tur­ers of small-frame gas tur­bines used pre­dom­i­nantly in the oil and gas and power gen­er­a­tion in­dus­tries. PECC’s prod­ucts are com­ple­men­tary to Meg­gitt’s ex­ist­ing valve tech­nol­ogy in the aero-de­riv­a­tive gas tur­bine mar­ket and ex­pand our range of ac­tu­a­tion ca­pa­bil­i­ties.

PECC’s sub­stan­tial level of in­tel­lec­tual prop­erty and sole-source mar­ket po­si­tions con­form to Meg­gitt’s strat­egy of in­vest­ing in highly-en­gi­neered com­po­nents and sub-sys­tems for use in ex­treme en­vi­ron­ments in its core aero­space, de­fence and en­ergy mar­kets.

Stephen Young, Chief Ex­ec­u­tive of Meg­gitt, com­mented: “The ac­qui­si­tion of PECC is a key step in broad­en­ing our in­dus­trial valve ca­pa­bil­ity. The very strong prod­uct and cus­tomer port­fo­lio and the ex­cep­tional cal­i­bre of the em­ployee base make the business a great fit with Meg­gitt.”

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