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Cobham Agrees to Acquire US Trivec-Avant Corporation, a Global Leader in Satellite Communication Antennas, for US$126 Million


Cobham plc has agreed to acquire US-based Trivec-Avant Corporation (‘Trivec’), a leading global supplier of sophisticated UHF satellite communication (SATCOM) antenna systems.


Trivec’s SATCOM technology, product range and customer base are highly complementary to Cobham’s Antenna Systems strategic business unit. The acquisition is in line with Cobham’s strategy to build scale in its target markets and deepen its investment in highly differentiated technology.


Cobham will acquire the entire share capital of privately owned Trivec for a cash consideration of US$126 million, payable on completion, on a debt and cash free basis. An additional cash consideration of up to US$18 million is payable between 2013 and 2014, contingent on future performance. Subject to regulatory approvals, the acquisition is expected to complete during the fourth quarter of 2011,

Information on Trivec-Avant

Trivec has industry leading expertise in the field of Satellite Communication (SATCOM) antennas for communications on the move, including next generation network-centric warfare. It specialises in ultra high frequency (UHF) SATCOM and steerable technologies, which permit low to horizon communication in adverse terrain and in demanding military and emergency response missions. It has a suite of over 400 high quality antenna designs, which are used in ground, airborne and maritime applications.


Rationale and Benefits of the Transaction

Trivec’s SATCOM technology is complementary to the existing range of antenna products in Cobham’s Antenna Systems strategic business unit and will be managed within this business as part of the Group’s Aerospace and Security Division. The acquisition of Trivec brings new SATCOM market leading technology capabilities to Cobham’s existing SATCOM antenna technology and product range, particularly UHF technology used in land, sea and airborne applications. The acquisition is consistent with Cobham’s strategic objectives of building scale in all its markets and investing in differentiated technology.


Trivec has long established customer relationships built on the reputation of its products for high performance and quality. Cobham’s complementary portfolio of products and customer relationships, together with the Group’s international presence and multiple routes to market, are expected to increase sales activity within the US and internationally. There is also potential for Trivec’s technology to be developed for specific commercial and security applications, leveraging Cobham’s diversified customer base and technology capabilities.

Financial Information

For the year ended 31 December 2010, Trivec generated operating profits of US$22.4 million and EBITDA of US$22.6 million. At 31 December 2010 Trivec had gross assets, excluding debt and cash, of US$11.7million.


After an allowable expense relating to goodwill amortisation (see note 3) Cobham is paying 4.5x 2010 EBITDA, in part reflecting the fact that 2010 was a year with exceptionally high land sales. It is expected that the acquisition will be immediately earnings enhancing and will cover its cost of capital in the first year of ownership.


Andy Stevens, Cobham Chief Executive Officer, said: "The acquisition of Trivec-Avant Corporation brings us a range of SATCOM antenna products and communication related technologies that are highly complementary to our existing business, together with opportunities to win further work from a long established customer base, as well as from our multiple routes to market."