Another historic engineer falls to foreign hands
aN eleCTroNICs firm formed from one of Britain’s most historic shipbuilders has been bought by a Us company.
laird, best known for making shark fin-style antennas to improve radio reception in cars, has been snapped up by private equity firm advent International for £1.2bn.
Former FTse 250 firm laird evolved out of Cammell laird, the major British shipbuilding company founded in 1824. Its famous ships include the hMs Prince of Wales, and it built the first steamboat to cross the atlantic.
It now employs more than 10,000 people around the world making antennas, wireless receivers, electro-magnetic and high-tech parts for customers including apple, samsung and BMW.
The sale comes amid growing pressure on the Government to toughen up the rules on foreign takeovers amid concerns that key UK technology firms are disappearing abroad.
Most of laird’s staff are in China, eastern europe and the Us after years of setting up bases abroad.
last night liberal democrat leader Vince Cable, the former business secretary, said: ‘It all adds to this story about the science base of our country just being hollowed out. It is time that the Government took a much clearer and stronger approach to the loss of our science base through overseas takeovers.
‘They really should have a mechanism in place where substantial high-tech assets are protected.’
laird has been vulnerable to takeover following a profit warning in october 2016 and a £185m rights issue two months later. It also scrapped its dividend.
shares slumped nearly 60pc in october 2016 from around 328p to around 141p and failed to recover, slumping to around 117p this week. They leapt 86p to 202p yesterday after the takeover by Boston-based advent, which is paying 200p per share, was announced.
laird also posted a return to profit of £57m. recommending the takeover, dr Martin read, laird’s chairman, said the offer was an attractive 72.6pc premium on the share price and gave shareholders certainty in cash.
he said: ‘advent has also stated its intentions to support laird’s employees and invest in the business as it moves to the next stage of development.’ shonnel Malani, advent managing director, said: ‘By leveraging our sector expertise we look forward to working with management to further enhance its industry-leading position.’
Founded in Boston by venture capitalist Peter Brooke, advent has previously bought firms in the UK including Brammer, the industrial parts suppliers and distributor, for £221m in 2016 after the firm’s shares fell 50pc following a profit warning.
advent also bought British sofaseller dFs from Cinven in 2010 and floated it in March 2015, selling its remaining stake last February.
advent also owned much of British payments processing firm Worldpay, after buying it from rBs, selling out following its public listing in 2015.
laird’s ex-chief executive david lockwood, who left in 2016 to be replaced by Tony Quinlan, told the evening standard: ‘If you’re going to go into private equity mode then advent is a good buyer.’
he added: ‘They invest and grow to make their model work rather than asset strip.’