Selling For US$38 Million

Cobham plc ('Cobham') tells ANN that it has reached an agreement to purchase S-TEC Corporation (from Meggitt plc) for a cash consideration of US$38M on a debt and cash free basis payable on completion. The purchase is anticipated to be complete before the year end, subject to regulatory approval. S-TEC designs, certifies and manufactures autopilots for general aviation aircraft, ranging from small single-engined to light commuter aircraft. Based at Mineral Wells Airport in Texas, USA, S-TEC has a workforce of 180 people, including many skilled avionics engineers who are capable of supporting the development of Cobham products.

Cobham notes that 'S-TEC is an excellent technological and market fit in the development of a Cobham cockpit of avionics.' OEMs increasingly expect their avionics supplier to provide an autopilot solution, with the market moving towards the inclusion of autopilots in EFIS type displays, such as Cobham's, to reduce weight, wiring and integration costs. S-TEC also has a strong presence in the retrofit market which Cobham says that it can leverage, and maintains positions with many OEMs including Adam, Cirrus, Eclipse, Piper and Pilatus.

Allan Cook, Cobham Chief Executive commented that, "S-TEC is an excellent technological and market fit in our development of a Cobham cockpit of avionics, with products from both companies certified together on more than 500 aircraft types." 

FMI: www.cobham.com