Defence and aerospace technology firm Meggitt has agreed to a £6.3bn takeover by US company Parker-Hannifin. Coventry-based Meggitt, which is listed on the FTSE 250 index, confirmed the offer, which values the firm at 800p a share.
Meggitt employs more than 9,000 people at 39 manufacturing facilities and regional offices worldwide. Parker-Hannifin said it was “committed to being a responsible steward” of Meggitt, reports BBC.
It said it was pleased that the deal had the full support of Meggitt’s board.
The price to be paid reflects a 70% premium on Meggitt’s closing share price on Friday, which was 469.1p.
“During our long-standing presence in the UK we have built great respect for Meggitt, its heritage, and its place in British industry,” said Tom Williams, chairman and chief executive of Parker-Hannifin.
Sir Nigel Rudd, chairman of Meggitt, said: “Meggitt is one of the world’s foremost aerospace, defence and energy businesses, leading the market with a strong portfolio of technology and manufacturing capabilities, and holding a significant amount of intellectual property.
“Whilst Meggitt is currently pursuing a strong, standalone strategy which will deliver value to shareholders over the long-term, Parker’s offer provides the opportunity to significantly accelerate and de-risk those plans, while continuing to deliver for shareholders.”
