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Cobham Reaches Agreement to Purchase S-Tec in the USA for US$38 Million

Nov. 27, 2007, Boise, ID  - Cobham plc has announced that it has reached agreement to purchase S-TEC Corporation from Meggitt plc for a cash consideration of US$38m on a debt and cash-free basis payable.


November 27, 2007
By Carey Fredericks

s-tec_webresolution_2aNov. 27, 2007, Boise, ID 
– Cobham plc, parent company of Chelton Flight Systems, is pleased to
announce that it has reached agreement to purchase S-TEC Corporation
from Meggitt plc for a cash consideration of US$38m on a debt and
cash-free basis payable on completion. The purchase is anticipated to
complete before the year end, subject to regulatory approval.

S-TEC
designs, certifies, and manufactures autopilots for general aviation
aircraft, ranging from small, single-engined to light commuter
aircraft. Based at Mineral Wells Airport in Texas, USA, S-TEC has a
workforce or 180 people, including many skilled avionics engineers who
are capable of supporting the development of Cobham products.

S-TEC
is an excellent technological and market fit in the development of a
Cobham cockpit of avionics. OEMs increasingly expect their avionics
supplier to provide an autopilot solution, with the market moving
towards the inclusion of autopilots in EFIS-type displays, such as
Cobham’s to reduce weight, wiring, and integration costs. S-TEC also
has a strong presence in the retrofit market which Cobham can leverage,
and positions with many OEMs including Adam, Cirrus, Eclipse, Piper,
and Pilatus.

Allan Cook, Cobham Chief Executive said:
“S-TEC
is an excellent technological and market fit in our development of a
Cobham cockpit of avionics, with products from both companies certified
together on more than 500 aircraft types.”