Ultra’s Weed Instrument deal
Article Date: Nov 13 2008A London-based electronic and electromechanical systems supplier to the defence and aerospace industries has strengthened its operations in the US with an acquisition of a company in Texas.
Ultra Electronics has bought nuclear and aerospace sensor company Weed Instrument for $31.6 million (£21.1 million). The deal will be funded off the group’s balance sheet, with half paid on completion and the remainder due next July.
Weed will now trade as a division of Information & Power Systems, Ultra’s nuclear systems operation, and will report through the group’s Advanced Tactical Systems business, also based in Austin, Texas.
Ultra chief executive Douglas Caster said the deal gives the group a strong position in the sensors and control systems market on both sides of the Atlantic. “This is a rising market in the UK and North America – money must be spent on replacing and upgrading existing systems whilst creating the capability to support future new build.”
Weed’s 100 employees make products, such as temperature and pressure sensors and fibre-optic converters and switches for the nuclear, aerospace and military markets, mostly in North America. In the 12 months to September 2008, its revenues reached $19 million, making an operating profit of about $3.2 million.
