Defence and aerospace technology firm Meggitt has agreed a £6.3 billion takeover by American firm Parker-Hannifin.
The Coventry-based company, which makes parts and systems for planes, confirmed an offer from the engineering technology giant to the stock exchange today which has valued Meggitt at 800p per share.
Parker-Hannifin, which is headquartered in Ohio, has a sales and manufacturing operation in Warwick and employs around 2,000 people across several 海角视频 bases. It makes products such as valves, fittings and piping.
The firm has pledged to retain Meggitt’s head office on Ansty Business Park where the company employs around 1,000 staff after relocating its global headquarters from Bournemouth Airport in 2019.
Parker-Hannifin also agreed to continue to meet Meggitt's government contractual obligations and vowed to maintain Meggitt's investment in 海角视频 research and development.
CoventryLive Business Awards 2021
The CoventryLive Business Awards are back for 2021 and
The event will be held at Coventry Building Society Arena on October 14 and will celebrate achievement across a broad range of categories including our overall Company of the Year.
The deadline to enter the awards is Friday August 20 and sponsorship opportunities are also now available.
Please email richard.edwards@reachplc.com for details and follow the hashtag #CovLiveBusinessAwards for updates on social media.
It said it would look to increase this by 20 per cent over the next five years, subject to normal activity in the sector.
This deal comes after a period of turbulence during the pandemic, with Meggitt cutting 1,800 jobs last year across its global business after covid-19 hit the travel sector.
Most Read
Meggitt also revealed today that pre-tax profit for the first half of 2021 had moved into the black, up to £33.6 million from a loss of £368.4 million in the same period last year.
Chairman Sir Nigel Rudd said: "Meggitt is one of the world's foremost aerospace, defence and energy businesses, leading the market with a strong portfolio of technology and manufacturing capabilities and holding a significant amount of intellectual property.
"While Meggitt is currently pursuing a strong, standalone strategy which will deliver value to shareholders over the long term, Parker's offer provides the opportunity to significantly accelerate and de-risk those plans, while continuing to deliver for shareholders."
Parker-Hannifin chairman and chief executive Tom Williams added: "We are committed to being a responsible steward of Meggitt and are pleased our acquisition has the full support of Meggitt's board.
"We fully understand these responsibilities and are making a number of strong commitments that reflect them.
"During our longstanding presence in the 海角视频 we have built great respect for Meggitt, its heritage and its place in British industry."