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Ultra Electronics proposes acquisition, £133.7m placing

07 July 2017 07:15

Ultra Electronics has entered into a conditional merger agreement to acquire NYSE-listed Sparton for $23.50 a share in cash, valuing that company's total equity at about $234.8m.

As part of the deal, Ultra would assume Sparton's net debt at completion. Adjusting for the targeted cost savings, this equated to a pro forma FY2016 EV/EBITDA multiple of 7.6-times.

Ultra also announced the launch of a placing with institutional investors of 7.0m new shares at 1950p each.

Net proceeds would be used to part-fund the acquisition, with the remaining acquisition consideration being funded through drawdown under the Ultra Group's existing bank facilities.

The placing was not conditional upon completion.

Story provided by StockMarketWire.com

Related Company: ULE

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