TIDMCHRT
RNS Number : 3670H
Cohort PLC
03 December 2020
3 December 2020
COHORT PLC
("Cohort" or "the Group")
Cohort completes acquisition of Wärtsilä ELAC Nautik GmbH
Cohort plc, the independent technology group, is pleased to
announce that the acquisition of Wärtsilä ELAC Nautik GmbH has now
completed. German government approval for the transaction was
granted in November and the other closing conditions were
subsequently met. The acquisition, which has a headline price of
EUR11.25m, is being funded from existing cash resources and the
Group's banking facilities. Wärtsilä ELAC Nautik GmbH will be
renamed ELAC SONAR GmbH ("ELAC SONAR").
A market leader in sonar systems technology for naval surface
ships and submarines, ELAC SONAR will join the Group as Cohort's
sixth standalone subsidiary. The acquisition will enhance Cohort's
maritime defence system offering, with market leading technology in
surface ship and submarine sonars, underwater communication systems
and echo sounders. In addition:
-- ELAC SONAR shares highly complementary expertise,
capabilities and technologies with Cohort Subsidiary SEA, providing
a significant cross-selling opportunity.
-- ELAC SONAR is focused on defence export markets, with naval
markets accounting for 80-90% of revenues, and strong penetration
in South East Asia and Europe. The acquisition also adds Germany as
a domestic market for the Group.
Background to the acquisition
Founded in 1926, ELAC SONAR is headquartered in Kiel, Germany,
employing around 130 permanent staff. It has a locally based,
highly experienced operational management team, who will remain in
place following the acquisition.
ELAC SONAR has a global customer base, predominantly in Asia and
Europe, but with a growing focus in North and South America. Its
customers include navies, shipyards, integrators and resellers,
with naval markets accounting for 80-90% of revenues whilst 10-20%
of revenues are generated from commercial and dual use markets.
ELAC SONAR has products currently in operation on various
submarines and surface ships, including for the German, Indonesian,
Singaporean, Taiwanese, Dutch and Portuguese navies.
ELAC SONAR's offer comprises highly customised and innovative
solutions for its customers, with a business model that focuses on
open architecture products that are easy to upgrade and customise.
Most supply contracts include services covering installation,
consultancy, system integration, acceptance tests, updates,
training and spare parts.
Financial information on ELAC
In its financial year ended 31 December 2019, Wärtsilä ELAC
Nautik generated revenues of EUR21.4m and EBIT of EUR1.8m. The
order back log as at 31 October 2020 stood at EUR26.0m, of which
c.EUR12m was for delivery during calendar year 2021 with some
long-term orders stretching out to 2025. As at 31 December 2019,
Wärtsilä ELAC Nautik had total assets of EUR28.6m. Wärtsilä ELAC
Nautik operates a small defined benefit pension scheme, which is
now closed to new members, but which may require modest funding by
Cohort in coming years. As at 31 December 2019, it had a deficit as
calculated under IFRS of EUR8.4 million.
Based on the order book, prospects and delays due to the
COVID-19 pandemic, a revenue of EUR20.7m and an EBIT of EUR1.0m is
expected for the year ending 31 December 2020. The acquisition is
expected to be earnings enhancing for the Group's financial year
commencing 1 May 2021, reinforced by ELAC SONAR's order book out to
2025 and its encouraging order pipeline.
Andrew Thomis, Chief Executive Officer of Cohort, said:
"We are delighted to welcome ELAC SONAR to the Group. This is a
significant step for Cohort, adding a sixth standalone business to
our portfolio. ELAC SONAR brings a leading position in the
attractive and growing submarine and surface sonar markets,
complementing our existing capabilities and giving the Group an
exceptionally wide and capable offering in this important
sector."
ENDS
For further information, please contact:
Cohort plc 0118 909 0390
Andrew Thomis, Chief Executive
Simon Walther, Finance Director
Raquel McGrath, Company Secretary
Investec Bank plc 020 7597 5970
Daniel Adams / Chris Baird
MHP Communications 020 3128 8100
Reg Hoare / Pete Lambie /
Isabella Grace
NOTES TO EDITORS
Cohort plc ( www.cohortplc.com ) is the parent company of six
innovative, agile and responsive businesses based in the UK,
Germany and Portugal, providing a wide range of services and
products for domestic and export customers in defence and related
markets.
Chess Technologies, through its operating businesses Chess
Dynamics and Vision4ce, offers surveillance, tracking and
fire-control systems to the defence and security markets. It was
acquired by Cohort plc in December 2018. www.chess-dynamics.com
& www.vision4ce.com
EID designs and manufactures advanced communications systems for
naval and military customers. Cohort acquired a
majority stake in June 2016. www.eid.pt
ELAC SONAR supplies advanced sonar systems and underwater
communications to global customers in the naval marketplace.
Acquired by Cohort in December 2020. www.elac-sonar.de
MASS is a specialist data technology company serving the defence
and security markets, focused on electronic warfare, digital
services and training support. Acquired by Cohort in August 2006.
www.mass.co.uk
MCL designs, sources and supports advanced electronic and
surveillance technology for UK end users including the MOD and
other government agencies. MCL has been part of the Group since
July 2014. www.marlboroughcomms.com
SEA delivers and supports technology-based products for the
defence and transport markets alongside specialist research and
training services. Acquired by Cohort in October 2007.
www.sea.co.uk
Cohort (AIM: CHRT) was admitted to London's Alternative
Investment Market in March 2006. It has headquarters in Reading,
Berkshire and employs in total around 1,000 core staff there and at
its other operating company sites across the UK. Germany and
Portugal.
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END
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