BELLEVUE, Wash., 19 Jan. 2009.Esterline Corp. officials announced an agreement to acquire United Kingdom (UK)-based Racal Acoustics, a leading provider of military communications equipment, from ECI Partners, a UK-based private equity group, for approximately $171 million.
Robert W. Cremin, Esterline's chief executive officer, says that the transaction "complements Esterline's existing expertise in secure communications and other sophisticated equipment for combat troop support, and fits our stated strategy to seek out companies that expand our talent pool and capabilities."
Esterline is a world-wide supplier to the aerospace and defense industry specializing in three core areas: avionics and controls, sensors and systems, and advanced materials.
Completion of the transaction is expected within the next month, subject to certain governmental approvals and customary closing conditions.
Racal is "a healthy and profitable business (with) an experienced and proven management team," Cremin says. The company employs nearly 200 people in northwest London, he adds.
Racal is a designer and manufacturer of high-technology, ruggedized personal communications equipment, ranging from lightweight noise-reducing headsets to advanced battlefield secure telephone networks.
Esterline was advised in this transaction by Taylor Wessing LLP, Perkins Coie and Jefferies & Company, Inc.