Ultra generates growth with £8m US acquisition

DEFENCE supplier Ultra Electronics, which has operations in Birmingham and Rugeley, has expanded with the £8m acquisition of a US power business.

The company, which also supplies the energy and transport sectors, has agreed to acquire the power conversion business operated by RFI Corporation, a wholly-owned subsidiary of DGT Holdings Corp, in a cash deal worth $12.5m.

Ultra said RFI is an established manufacturer of proprietary, high-voltage, power conversion subsystems including electronic filters, high voltage capacitors, pulse modulators, transformers and reactors, and a variety of other products designed for industrial, medical, military and other commercial applications. It is based in Long Island, New York, close to Ultra’s EMS Development Corp, part of the group’s Airport & Power Systems division.

RFI is expected to be integrated into the EMS business over the remainder of 2012 and the deal is expected to complete during the third quarter.

Rakesh Sharma, Ultra chief executive, said: “I am pleased that we have reached agreement to acquire RFI. It has strong market and technical synergies with EMS with which it will be combined to the benefit of both businesses.”