As announced in August, the boards of Meggitt and Parker have reached agreement on the terms and conditions of a recommended all cash acquisition by Parker of the entire issued, and to be issued, ordinary share capital of Meggitt.
Parker has now also confirmed that it has signed legally binding economic commitments with the UK government. These commitments include maintaining the following, for five years after the closing of the acquisition:
- Meggitt’s headquarters and its aerospace and advanced materials centre of excellence in Ansty Park, in Coventry, UK.
- Meggitt’s key areas of existing operational capability in the UK.
- R&D (including product engineering) and manufacturing labour headcount in the UK.
- Meggitt’s sustainability targets of reducing net carbon emissions by 50 percent, by 2025 and achieving net zero greenhouse gas emissions by 2050.
- Contractual obligations regarding supply of goods and services to HM government.
Finally, as innovation is a key driving factor of success for both Meggitt and Parker, Parker has agreed to increase Meggitt’s R&D expenditure in the UK by at least 40 percent, by the end of the Undertaking Period, and its UK apprenticeship opportunities by 20 percent.
“We are pleased to have reached this important clearance milestone from the UK secretary of state,” said Tom Williams, chairman and chief executive officer. “We have also agreed to substantial legally binding commitments, which underscore our deep commitment to the UK. As we move closer to the completion of the acquisition and the combination of these two strong businesses, we look forward to welcoming the Meggitt team to Parker.”
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