British engineering agency Meggitt agree £6.3bn takeover by US tech large Parker-Hannifin | Enterprise Information

Defence and aerospace expertise agency Meggitt has agreed a £6.3bn takeover deal by US agency Parker-Hannifin.

The FTSE 250 firm confirmed a proposal from the US engineering expertise large valuing Meggitt at 800p per share.

It mentioned the transfer represents a 70% premium on the share worth of the corporate on the finish of buying and selling on Friday, when it was at 469.1p per share.

Tom Williams, chairman and chief government of Parker-Hannifin, mentioned: “We’re dedicated to being a accountable steward of Meggitt and are happy our acquisition has the complete assist of Meggitt’s board.

“We totally perceive these tasks and are making various robust commitments that replicate them.

“Throughout our longstanding presence within the UK we have now constructed nice respect for Meggitt, its heritage, and its place in British trade.”

Meggitt chairman Sir Nigel Rudd mentioned: “Meggitt is without doubt one of the world’s foremost aerospace, defence and vitality companies, main the market with a robust portfolio of expertise and manufacturing capabilities, and holding a big quantity of mental property.

“While Meggitt is presently pursuing a robust, standalone technique which is able to ship worth to shareholders over the long-term, Parker’s provide gives the chance to considerably speed up and de-risk these plans, whereas persevering with to ship for shareholders.”

Chief government Tony Wooden mentioned: “Bringing collectively the Meggitt and Parker companies will present elevated profit to the UK with the supply of applied sciences, merchandise and capabilities by Meggitt, and a number one aerospace enterprise in Parker.

“The provide from Parker is an endorsement of the work undertaken to remodel the Meggitt Group in recent times, and the mixed group will maximise the alternatives for future progress and profitability with a shared dedication to operational excellence, permitting us to proceed to spend money on our individuals, services and products for patrons worldwide for years to return.”

Meggitt is the second British defence agency in current weeks to change into a takeover goal for a US-backed firm, following Cobham’s bid for Extremely Electronics.

Cobham has mentioned it might provide “applicable nationwide safety undertakings” to the UK authorities.

Meggitt employs greater than 9,000 individuals in 14 international locations in its three main divisions.

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