LONDON (ShareCast) - (ShareCast News) - Optical components and systems manufacturer Gooch & Housego announced on Monday that it has completed two acquisitions, expanding its presence in the aerospace and defence sectors.
The AIM-traded company confirmed the two acquisitions as Kent Periscopes - a UK-based specialist supplier of periscopes, vehicle sights and related equipment for land-based armoured fighting vehicles - and Alfalight - a Wisconsin-based designer and manufacturer of high-reliability, laser-based electro-optic systems for defence and security.

G&H said the acquisition of Kent is in line with its strategic objectives of moving up the value chain, and further diversification in the aerospace and defence sector.

The consideration payable by G&H will be up to £9.5m, net of cash remaining in the business, comprising of £7m initial cash consideration funded from existing cash and existing facilities, and a deferred contingent consideration of £2.5m payable in cash and a small number of shares.

Payment of the contingent consideration will be based upon the performance of the business over the next two years.

G&H also confirmed the consideration paid for Alfalight was $1.3m cash, funded from existing cash and debt facilities at completion.

"These acquisitions meet our strategic aims of moving up the value chain and diversification through increasing our footprint in the aerospace and defence sector," said Gooch & Housego chief executive officer Mark Webster.

"Kent is a well established business with an impressive list of international blue chip customers.

"We believe that G&H will enable this business to fulfil its true potential through leveraging our greater global reach and our complementary technological capabilities," Webster said.

He added that Alfalight's expertise in diode lasers in the US defence sector is an "excellent fit" for the company's Boston business, and will enable it to establish a critical mass in this marketplace.

"We are very much looking forward to working with the management, staff and customers of both companies."

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