Meggitt buys IP-laden valves business PECC for $44m
Aerospace engineer Meggitt has strengthened its industrial valve offering with the $44m cash acquisition of California-based Precision Engine Controls Corporation, which serves the oil and gas and power generation industries.
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PECC, which was bought from owner United Technologies Corporation from existing resources, supplies of actuation systems and fuel metering valves to manufacturers of small-frame gas turbines.
Meggitt said PECC's products, which are covered by a "substantial" level of intellectual property, were complementary to its own valve technology in the aero-derivative gas turbine market and expands its range of actuation capabilities.
"PECC's substantial level of intellectual property and sole-source market positions conform to Meggitt's strategy of investing in highly-engineered components and sub-systems for use in extreme environments in its core aerospace, defence and energy markets," the FTSE 100 company said.
Chief executive Stephen Young added: "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."
PECC is headquartered in San Diego, California, and employs 78 people and will be integrated into Meggitt's control systems division.