British aerospace engineer Ultra Electronics under siege by private equity robbers
Ultra Electronics revealed that it was in poor health after first-half bumpers as private equity conglomerate Advent International continued to corner the firm.
The defense engineering company said sales and orders for its specific technologies – including cyber security systems and parts for the Eurofighter Typhoon jet – have jumped.
Throughout the year it is expected that orders will be above 2020 levels.
Ultra Electronics said sales and orders for its specialty technologies – including cybersecurity systems and parts for the Eurofighter Typhoon jet (pictured) – had jumped
Ultra’s impromptu trading update comes as Advent, via Cobham, the former UK defense giant that already owns it, has said it is eyeing the company and may make a takeover offer.
It would have to bid or go away by July 23 under city rules. AJ Bell’s investment director Russ Mold said the upbeat update could actually motivate a bidder.
Talk of the acquisition of Advent underscores the vulnerability of British aerospace firms, which the industry fears will be easy prey after Covid ravages the leisure air travel market.
Fellow FTSE250 Group Senior last month acquired private equity group Lone Star for £840 million.
But even before the pandemic, aerospace groups were the target. Cobham fell to Advent in a £4 billion deal last year