Cobham has completed the divestment of its non-core US-based rescue beacon business to J.F. Lehman & Company for US$ 73 million. In addition, it has divested its small related European operation to management for a nominal sum.
The businesses—ACR Electronics, Inc. and ACR Electronics Europe GmbH—design and manufacture beacons and emergency location transmitters, with activities in Fort Lauderdale, Florida, USA and Vienna, Austria, respectively. Both have significant exposure to non-core outdoor recreational markets through retail outlets, as well as customers in mature military markets.
This is the most significant remaining step, following the completion of the sale of the Analytic Solutions business in November 2011, towards achieving the divestment of the Group’s non-core activities. Cobham’s remaining non-core businesses comprise small, sub-scale businesses and product lines, which together generated annual revenue of approximately £20m in 2011. These will be divested individually over time as transactions are agreed.
Warren Tucker, Chief Financial Officer said:
“These transactions substantially complete the planned divestments of Cobham’s non-core businesses, leaving us with a portfolio of focused businesses, each of which has differentiated technology and a leading position in attractive markets.”
