BUSINESS NEWS
06 Apr 09. The Support Services Division of U.K. military bridging specialist WFEL, is currently negotiating a contract with the U.S to refurbish existing DSBs and Medium Girder Bridges (MGB) used in Iraq, and was bidding for a potential five-year contract with the UK Ministry of Defence to inspect and repair MGBs and Air Portable Ferry Bridges (APFB). WFEL, which was the subject of a £48m management buyout in December 2006 backed by private equity firm Dunedin, confirmed the orders as part of a full year trading update for the 12 months to 31 December 2008. During the period, the company grew turnover to £29.6m (2007: £27.8m) and profits to £5.8m (2007: £5.7m). Its total secured order book stood at £42m. WFEL chief executive, Ian Wilson, said the firm’s twin-track sales strategy of targeting customers in new territories with its suite of products, as well as existing customers with support services packages, was paying dividends. Tactical bridging is a planned military purchase and this continues to insulate the group against the current global recessionary climate. Forward demand remains strong and we’re currently in discussion with over 65 new customers, including militaries in the Middle East and Far East. We’ve supplied over 500 MGBs which are in service throughout the world, as well as dozens of DSBs. This creates a huge opportunity to provide our technical expertise in repair and maintenance to existing customers.” The company said it would also continue to look for opportunities to apply its defence engineering expertise to other related markets. Last year, it completed the construction of a 250 tonne ‘ski jump’ for the U.S Department of Defense, where it will be used by pilots testing the new F-35 Joint Strike Fighter (JSF). Dougal Bennett, director at Dunedin, who led the original deal comments: “Since Dunedin’s original investment in December 2006, we have seen substantial growth in sales, employment and opportunities open to the business. We have worked closely with the management team to create value and drive sales into new markets around the world. The new contracts have allowed the Company to increase its manufacturing workforce by 60% to 128 people, a rare manufacturing success story in the current environment. WFEL’s development, engineering and manufacturing resources are state of the art which supports its strong track record of specialist expertise, innovation and engineering excellence.”
06 Apr 09. Cobham plc has reached agreement to acquire the share capital of Argotek, Inc., a privately owned company based in the USA, for a consideration of US$36.25m, comprising US$26.25m payable in cash on completion on a debt and cash free basis, and a seller’s note of US$10m which will be payable in instalments on the first, second and third anniversary of completion. The acquisition of Argotek is expected to complete in the first half of the year, subject to approval from the Committee on Foreign Investment in the United States. Argotek provides high-end information assurance services to the US intelligence community. It has a skilled workforce of 70 professional information assurance experts, all of whom possess US security clearances and who are based at customer locations. It is an excellent fit within Cobham Analytic Solutions’ (formerly SPARTA’s) existing National Security Systems Sector, adding technical depth and expertise and expanded customer relationships. Its core competences will be in demand for critical programmes, including the Comprehensive National Cyber Initiative, a major government-wide effort to strengthen US defences against electronic attack. Allan Cook, Cobham Chief Executive, said: “The acquisition of Argotek adds further depth to our information assurance capabilities and builds on the successful acquisition of SPARTA in 2008. Argotek will strengthen our customer relationships in the growing US intelligence market, where cyber security is of critical nationa