Cobham confirms it is eyeing up Ultra Electronics

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Another British engineer could be about to fall into foreign private equity hands after Cobham confirms it is eyeing up Ultra Electronics

By Francesca Washtell And Lucy White For The Daily Mail

Published: | Updated:


Another prestigious British engineer could be about to fall into foreign private equity hands after Cobham confirmed it was eyeing up Ultra Electronics. 

Cobham, which pioneered air-to-air refuelling technology, was snapped up by US firm Advent International last year in a controversial £4billion deal. 

Advent has since broken Cobham up and sold the pieces – reneging on promises it made to be a long-term investor in Cobham. 

Up in the air: Cobham, which pioneered air-to-air refuelling technology, was snapped up by US firm Advent International last year in a controversial £4billion deal

Now FTSE250-listed Ultra, which makes highly sensitive military equipment, is being targeted. 

In an announcement to the stock market late yesterday, Cobham said it could look to buy Ultra. 

But keeping its options open, the engineer said Advent may also look to sell Cobham to Ultra in return for shares in the newly enlarged business. This would mean Cobham could make a return to the stock market, after just over a year under Advent’s control. 

Cobham said the talks were in the early stages, and there was currently ‘no certainty that an offer will be made for Ultra or Cobham’. 

But Ultra issued a rebuttal claiming the pair had terminated talks days ago for Ultra to buy the sole remaining part of Cobham, a division called CAES. 

Ultra had walked away, it added, and both companies had agreed they were not considering a full takeover or merger. 

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