INVISIO acquires Racal Acoustics, a world-leading UK-based supplier of communication and hearing protection solutions22 December 2020
Racal Acoustics Ltd, a subsidiary of TransDigm Group Inc. prior to INVISIO’s acquisition, is a world-leading brand with a history of more than 100 years in the design, development and manufacture of communication and hearing protection systems, focused on audio ancillary equipment for the military, first responder and aviation sectors. The London-based business has 55 highly skilled employees and a global footprint.
The acquisition is aligned with INVISIO’s growth strategy and the ambition to further strengthen its global market-leading position within communication and hearing protection systems.
The acquisition means that INVISIO will broaden its offer with a complementary new product category, consisting of advanced and rugged hearing protection and communications headsets for environments with constant high noise, often found in larger military vehicles and around aircraft.
The acquisition will provide INVISIO with access to customers and prospects in the attractive market niche for communication and hearing protection in vehicles, which is a highly relevant area for the new INVISIO Intercom System.
The purchase price to be paid by INVISIO is approximately SEK 170 million and is expected to be cash and debt-financed. Racal Acoustics has recently completed a successful restructuring. The acquisition is expected to contribute to INVISIO’s revenue for 2021 with more than SEK 130 million and with a positive result. No material integration costs are anticipated.
Under the terms of the acquisition, INVISIO will also acquire Racal Acoustics Inc, a US based sales company through which Racal Acoustics markets and sells its products to the US market. The acquisition, which is expected to close during the first quarter of 2021, is subject to regulatory approvals and customary closing conditions.
“We are very excited to welcome Racal Acoustics into the INVISIO-family. The deal is a perfect fit as the two companies are largely complementary. Over many years Racal Acoustics has built a strong position for communication and hearing protection in high noise environments such as military vehicles, while INVISIO has built a strong position for users in the field. Our combined product offerings and market footprints will strengthen our world leading position as the communication and hearing protection expert for users within military, first responder and aviation markets, whether in the field or in a vehicle,” says Lars Højgård Hansen, CEO of INVISIO.
“Joining INVISIO is the perfect next step to fully explore the potential in Racal Acoustics. As the companies to a large extent share the same business-DNA but target different market segments and sales channels, we have all the elements for a strong growth story and future together,” says James Ewing, Managing Director at Racal Acoustics.
For more information, please contact:
Lars Højgård Hansen, CEO, INVISIO AB
Mobil: + 45 5372 7722 | E-mail: [email protected]
Michael Peterson, Director Investor Relations & Corporate Communication, INVISIO AB
Mobile: + 45 5372 7733 | E-mail: [email protected]
The advisers to INVISIO are PwC, Cederquist, Orrick Herrington & Sutcliffe. The advisors to TransDigm are Reed Smith and Seabury Securities.
This information is information that INVISIO AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the CEO, on December 22, 2020 at 02:30 CET.
About INVISIO AB (publ)
INVISIO develops and sells advanced communication systems that enable professionals in noisy and mission critical environments to communicate, protect their hearing and work effectively. The company combines specialist knowledge in acoustics and hearing with broad engineering know-how in software, materials technology and integration. Sales are via the headquarters in Copenhagen and sales offices in the USA, France and Italy and via a global network of partners. INVISIO’s registered office is in Stockholm, Sweden and the company is listed on Nasdaq Stockholm (IVSO). www.invisio.com.
About Racal Acoustics Ltd.
Racal Acoustics delivers reliable, versatile audio communications while maintaining the highest levels of user safety and comfort. The products feature the latest digital signal processing and acoustic design. Racal Acoustics solutions include headsets for high-noise and medium-noise environments, as well as accessories, for use in paramilitary, first-responder and aviation markets. The London based company was a subsidiary of TransDigm Group Inc. prior to INVISIO’s acquisition. www.racalacoustics.com
About TransDigm Group Inc.
TransDigm Group, through its wholly owned subsidiaries, is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft in service today. The annual revenue for the fiscal year, ended September 30, 2020, amounted to USD 5,103 million. TransDigm common stock is traded on the New York Stock Exchange and the ticker symbol is TDG. www.transdigm.com