Meggitt targets expansion with $44m purchase

 
Caitlin Morrison
Follow Caitlin
ENGINEERING firm Meggitt yesterday bought Precision Engine Controls Corporation (Pecc) from United Tech­no­logies Corporation for $44.2m (£29.1m).

The deal, funded from existing resources, will see San Diego-based Pecc integrate into Meggitt’s control systems division.

Pecc supplies actuation, or motor, systems and fuel metering valves to manufacturers of small-frame gas turbines used predominantly in the oil and gas and power generation industries.

According to Bournemouth-based Meggitt, Pecc’s products are complementary to its existing technology and will help to expand the firm’s capabilities.

The company also stated that Pecc’s “substantial level of intellectual property and sole-source market positions” fit with Meggitt’s strategy of investing in components and systems for use in extreme environments in its core aerospace, defence and energy markets.

Stephen Young, the chief executive of Meggitt, said: “The acquisition of Pecc is a key step in broadening our industrial valve capability. The very strong product and customer portfolio and the exceptional calibre of the employee base make the business a great fit with Meggitt.”

Following the announcement, the company’s shares closed down 0.88 per cent at 509p.