LONDON--Investment company Better Capital PCC Ltd. (BCAP.LN)
Friday said it has acquired the entire issued share capital of
specialist aerospace manufacturer CAV Aerospace Ltd. from an
overseas holding company.
Better Capital is investing an initial GBP40 million ($59
million) to fund the acquisition, it said, adding there may be
future opportunities to grow the company through bolt-on
acquisitions.
CAV Aerospace supplies metallic components and sub-assemblies to
several major original equipment manufacturers including Airbus
Group (EADSY), Embraer SA (EMBR3.BR) and Gulfstream Aerospace Corp.
(GSA-XX), Better Capital said in a statement. CAV Aerospace
operates from seven sites--four in the U.K., two in Poland and one
in Mexico, it added.
Better Capital said it has been tracking CAV Aerospace for
several years and believes the company operates in a growing market
which is expected to continue to perform well. It said CAV
Aerospace has received a good level of investment, but would
"benefit significantly" from strengthened operational support.
CAV Aerospace's revenue for the year to Dec. 31 2013 was GBP74
million, with the business operating close to breakeven, said
Better Capital.
Better Capital shares closed Thursday at 91.3 pence, valuing the
company at GBP189 million.
-- Write to Simon Zekaria at simon.zekaria@wsj.com
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