TT Electronics plc, the global provider of engineered electronics for performance critical applications, has acquired the Power and Control business of Ferranti Technologies Ltd, from Elbit System UK Ltd for £9 million in cash, subject to customary post-completion working capital adjustments.
Ferranti P&C, based in Greater Manchester, designs and manufactures mission-critical complex power and control sub-assemblies for blue chip customers in high-reliability and high-performance end markets, primarily aerospace and defence. One of the principal benefits of the acquisition is that it brings highly skilled employees who provide full-service capabilities from design, assembly, manufacturing, and testing including environmental stress screening and inspection through to service.
Ferranti P&C adds further technology capability, IP and scale to TT’s Power Solutions business, which is one of our focus areas for structural growth. It has valuable long-term customer relationships and programmes with leading global aerospace, defence and industrial OEMs operating in highly regulated markets with significant barriers to entry through necessary industry accreditations and customer approvals.
Richard Tyson, Chief Executive Officer said: “We are pleased to announce the acquisition of Ferranti’s Power and Control business which is in line with our strategy for growth at higher margins and moving up the value chain in our target end markets in A&D. This highly attractive platform adds scale and technology capabilities to our Power Solutions business in Europe. We expect to achieve our financial return hurdle rate in the first full year.
“I am delighted to welcome Ferranti Power and Control’s highly skilled team to TT as we continue to build differentiated capabilities and engineer smarter solutions for our customers.”
Michael Leahan, COO, TT Electronics said: “The acquisition of Ferranti Power and Control is well aligned with our global strategy of becoming a world leader in power conversion and power management. The addition of their talented team of engineers and product portfolio will help us build leading positions in high-reliability markets including aerospace and defence. The business fits well with our two most recent power electronics acquisitions in the USA, and we are now in an even stronger position to provide high-performance power solutions and a world-class service experience to our combined network of blue chip customers.”