Home / Business and Economy / UK Defence Firm Senior Falls to £1.4B US Bid
UK Defence Firm Senior Falls to £1.4B US Bid
8 Apr
Summary
- Senior accepted a £1.4billion takeover offer from US firms.
- The aerospace and defence supplier backs the 300p a share bid.
- This acquisition is the latest of a British firm by foreign buyers.
London-listed aerospace and defence supplier Senior is poised to be acquired by US investment firms Tinicum and Blackstone. The board has accepted a joint offer valued at £1.4 billion, equating to 300 pence per share.
This proposed takeover is the latest in a series of acquisitions of British companies by foreign buyers this year. Such deals have fueled concerns that foreign entities are purchasing UK firms at undervalued prices.
Senior, a company with a two-century history, specializes in high-tech components for the defence, aerospace, and energy industries. Its products include critical systems like ducts and valves for fuel consumption control.
Among Senior's major clients is the US defence giant Lockheed Martin, a key manufacturer of the F-35 Lightning fighter jet. The acquisition comes at a time when global defence spending is increasing due to ongoing conflicts.
Senior's chairman, Ian King, stated that the bid acknowledges the company's attractiveness and offers shareholders an immediate cash realization at a favorable valuation. Senior shares, which had already seen a significant increase of over 40% year-to-date, experienced a slight gain.
