Aerospace & Defence Newsletter, November 2018

Graham Carberry | Nov 2018

Aerospace & Defence Newsletter, November 2018

Within the Aerospace and Defence sectors activity has been strong, with our work reflecting many of the key trends in the wider space over the last 12 months; and which we discuss in more detail in this newsletter.

Coming of Age
The growth of the UK Space sector, and the industry as a whole, was a major area of focus at Farnborough this year and was exemplified by our successful sale of leading UK satellite manufacturer Clyde Space to AAC for a significant multiple of revenue.

Flying Along
The robustness of the civil aerospace sector meanwhile was a primary driver of FTSE 250 Meggitt retaining Livingstone to successfully sell its fast-growing Precision Micro unit to LDC earlier this year. Precision Micro was deemed non-core only because it was not a ‘pure play’ aerospace business in line with Meggitt’s stated focus, rather it served multiple technical manufacturing sectors.

Digital Defence
Our sale of Nettitude to Lloyds Register in a very competitive process, the latest in a run of deals in the space, confirmed the continued robust desire to access this fast growing sector among large trade buyers.

There has been, of course, a lot of background noise, which the industry has had to weather and much of this may roll into early 2019 and possibly beyond. Furthermore, both the problems at Rolls Royce and Airbus’ war of words with sections of the UK political cast on Brexit have been painful to watch. Yet the sector has marched on well, with UK revenues widely expected to rise robustly again this year. Despite recent changes to CMA powers and growing government interest in sector M&A transaction volumes have remained robust and average price achieved has actually risen.

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Precision Micro, Europe’s market-leading photo-chemical etching company, has been sold by Meggitt

Livingstone’s Industrial sector team has advised global aerospace and defence group, Meggitt plc on the sale of Precision Micro, Europe’s market-leading photo-chemical etching company, to private equity house LDC for £22.5m.
Apr 2018

Clyde Space, the leading player in the global CubeSat market, has been acquired by ÅAC Microtec

Livingstone’s Media & Technology team has advised Clyde Space, backed by Nevis Capital and Coralinn, on its acquisition by ÅAC Microtec, which is publicly listed on Nasdaq First North Stockholm in Sweden, for £35m (7x revenue).
Media & Technology
Jan 2018

UK Aerospace industry continues to thrive

The UK aerospace industry has been a major success story over the last two decades, with a bright future for M&A. Livingstone's Tom Reece discusses the sector's potential.
Jul 2017