StockMarketWire.com - Defence, aerospace and energy engineer Meggitt said it had agreed to be acquired by US aerospace group Parker-Hannifin for £6.3 billion.

Meggitt investors would get 800p in cash for each of their shares in the company, representing a 71% premium to their closing price on Friday.

'Parker believes that the acquisition would be strategically and culturally compelling, and enhance the future prospects of the combined group within global aerospace and defence industries,' Parker said.

To win the blessing of UK regulators, Parker pledged to ensure that Meggitt would maintain its existing technology and manufacturing that resides in the UK.

It also would ensure the majority of Meggitt directors were UK nationals and maintain Meggitt's existing R&D, product engineering and manufacturing labour headcount in the UK at no less than current levels, among other commitments.

'Bringing together the Meggitt and Parker businesses will provide increased benefit to the UK with the provision of technologies, products and capabilities through Meggitt, and a leading aerospace business in Parker,' Meggitt chief executie Tony Wood said.

'The offer from Parker is an endorsement of the work undertaken to transform the Meggitt in recent years.'

Separately, Meggitt announced a that it had swung to a first-half profit of £33.6 million for the six months through June, compared to a year-on-year loss of £368.4 million.

Underlying pre-tax profit, however, fell 42% to £48.4 million, as revenue fell 16% to £680.0 million, hurt by weakness in the civil aerospace market.



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