Meggitt acquires PECC from United Tech
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.”