LONDON (Reuters) - British engineering firm Meggitt (MGGT.L) said it agreed to buy U.S.-based aerospace components company EDAC for $340 million, building on another acquisition it made last month to create a scale player in the sector.
Meggitt, which will suspend an ongoing buyback program for the rest of this year to maintain financial flexibility, is to buy EDAC, formerly known as Parkway Aerospace and Defense, in cash from a group of sellers led by Greenbriar Equity Group.
The deal helps cement Meggitt’s position supplying advanced composites for jet engines and airframes, following its acquisition of Cobham’s (COB.L) unit in August in a $200 million deal.
“This decisively moves our composites strategy forward, and positions us strongly in this key growth area,” Meggitt’s Chief Executive Stephen Young said in a statement.
Meggitt said it would also finance the deal through increasing previously announced debt facilities.
Reporting by Sarah Young; editing by Kate Holton