Meggitt laid out its stall on the eve of the show with a $380million bid for the Whittaker Group.
UK-based Meggitt has followed a strategic acquisition policy to exploit niche markets in the aerospace industry. Whittaker's aircraft fire and smoke detection systems will make a good fit with its suitors expanding condition monitoring systems.
Meggitt proposes to combine Whittaker's hydraulic and pneumatic ducting operations with its own valve business and brand it as a dedicated systems group.
Much of Whittaker's activity is focused on its aircraft valve business but it is a market leader in other areas including engine and nacelle de-icing. Its customers include Boeing, Airbus, GE, Northrop Grumman, Lockheed Martin, Pratt & Whitney and Rolls-Royce.
Meggitt has said it expects to see improved earnings, if the deal goes ahead, even before the effect of the planned cost cutting is felt. Its offer values Whittaker's shares at US$28 each.
Arriving at the show following the Whittaker bid, Meggitt Aerospace Components announced that it has successfully negotiated a contract with Liebher to supply low pressure cabin air distribution systems for the Bombardier BD 100 and Augusta AB139. Liebher will use Meggitt's new technology to achieve ultra lightweight durable ducting system for cabin air distribution.
Source: Flight Daily News
