COM DEV to acquire MESL Microwave for $23M

CAMBRIDGE, Ont.—COM DEV International Ltd., a designer and manufacturer of space hardware and subsystems, has agreed to acquire MESL Microwave Ltd. for $23.24 million (£12.8 million) in a transaction to expand COM DEV’s market and product portfolios.

Headquartered in Edinburgh, Scotland, MESL Microwave Ltd. designs and manufactures components and subsystems for the radar, communications, defence and aerospace industries.

The transaction builds on the Com Dev’s expertise in radio frequency ferrite equipment and microwave devices for satellites. It also adds skills, complementary capability and capacity to the company’s current U.K. facilities to address a rapidly expanding global demand.

The acquisition of MESL Microwave Ltd. also provides the Com Dev with greater access to the aerospace market with microwave component products that are complementary to COM DEV’s product offering in the space market.

“Cross-party support from within government for the U.K.’s Space Innovation and Growth Strategy, and the leadership of the U.K. Space Agency and Innovate U.K. have shown us that the U.K. is serious about exploiting the potential of the space industry for the long term,” Rob Spurrett, president of COM DEV International Systems.

The purchase price represents an EBITDA multiple of 8.5 times projected full year EBITDA, and is being financed by a combination of cash on hand and borrowing under the Com Dev’s previously expanded credit facility. The transaction is scheduled to close December 31, 2014, and is expected to be accretive to EBITDA and EPS in fiscal 2015.

“We are now moving to a new phase in UK operations. We have seen growth in revenue in our Aylesbury facility over recent years and are anticipating further substantial growth in this supportive environment. We are now well-placed with a foothold close to the space hub in Harwell, England, and with this transaction now in the Scottish space cluster as well,” said Michael Pley, CEO of COM DEV International Ltd.