A report in Army Technology says that the US buy-out group Advent International has reached an agreement to acquire the British aerospace and defence firm Cobham “for a total cash consideration of £4 billion” (with Cobham shareholders receiving £1.65 per share) (www.adventinternational.com).

The company specialises in satellite communications, defence electronics, air-to-air refuelling, aviation services, life support and ‘mission equipment’.

Cobham (www.cobham.com) CEO David Lockwood said: “We have worked intensively over the last two and half years to focus on our customers and our financial and operating performance.

"These fundamentals — along with the investment in the business that Advent can provide — will enable us to leverage the quality of our products and services.

"Most of all, this offer reflects the potential for future growth and improving performance, and it is an endorsement of our turnround strategy and our people.”

Cobham set out to achieve a multi-year turnround following a ‘challenging’ 2016.

This strategy helped to strengthen its balance sheet through a £512 million (before expenses) rights issue in May 2017.

In March 2018, the company sold its AvComm and Wireless test and measurement businesses.

Company chairman Jamie Pike said: “The Cobham management team’s turnround actions over the last two and half years have begun to improve our performance, which is reflected in our 2019 interim results.

“The Cobham board is unanimously recommending the offer from Advent, as it represents an opportunity for shareholders to realise their investment in cash in the near term.”