TT Electronics, a Surrey-based 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 £9m in cash.
Based out of Greater Manchester, Ferranti P&C designs and manufactures complex power and control sub-assemblies for blue-chip customers, primarily for the defence and aerospace markets.
The acquisition adds technology capabilities, intellectual property, and “highly skilled” employees who provide full-service capabilities to TT’s Power Solutions business. It also allows TT Electronics to access long-term customer relationships and programmes with leading global aerospace, defence, and industrial OEMs operating in highly regulated markets.
TT Electronics said it expects the acquisition to be “modestly earnings enhancing” and that it expects to “generate cost synergies of circa £0.4m by year three”.
TT Electronics provides customers with engineering support and expertise through a global network of specialists and facilities. It designs and manufactures products including power management devices, sensors, and connectivity solutions.
The company is listed on the London Stock Exchange and works with customers in the industrial, aerospace and defence, medical, and transportation sectors. TT Electronic’s has a market capitalisation of £456m. It’s shares climbed around 2% following news of the Ferranti acquisition.
“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,” said TT Electronics CEO Richard Tyson. “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.”
He added: “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.”