Ultra Electronics buys Australia's Avalon

8th Jul 2009 10:10

Defence business Ultra Electronics has announced the acquisition of South Australia's Avalon Systems for A$16.5m in cash on a debt and cash fee basis. The acquisition will be financed using Ultra's existing banking facilities.Avalon specialises in the field of Electronic Warfare (EW), undertaking the design and manufacture of EW sub-systems and providing engineering consultancy services and through-life support. Since its foundation in 1995, Avalon has traded profitably with sales in the year to 30 June 2009 of about A$13m."I am pleased to bring Avalon into the group as Ultra's first acquisition in Australia. It supports the group's growth strategy by positioning Ultra in the Asia Pacific region," said chief executive Douglas Caster."Avalon is a high quality business with significant potential for further development in its own right. It also provides the support infrastructure for Ultra's sonar team working on the integrated solution for the AWDs."