Gooch & Housego (G&H), a Somerset-based components manufacturer founded nearly 80 years ago, has agreed to be acquired by US private equity firm Arlington Capital Partners (ACP) in a deal valued at £345.6 million. The Ilminster-headquartered company, established in 1948, operates 11 manufacturing sites supplying sectors including aerospace, defence, industrial, and life sciences across Europe, Asia, and the US.
Takeover Terms and Shareholder Value
Under the terms of the agreement, G&H shareholders will receive 1,234.9 pence per share, comprising 1,230.0 pence in cash plus an interim dividend of 4.9 pence per share. The board of G&H has unanimously recommended that shareholders vote in favour of the scheme. Investec and Rothschild & Co advised G&H on the acquisition, while Kirkland & Ellis International is acting as adviser to Bidco and ACP, and Burges Salmon is advising G&H.
Strategic Rationale and Management Support
Gary Bullard, chair of G&H, stated: "The offer provides G&H Shareholders with immediate and certain value in cash at a significant premium to recent share price levels, while also recognising the value of G&H's strategy, market position and long-term growth prospects." Peter Manos, managing partner of ACP, added: "G&H has built an exceptional reputation as a precision photonics and optical systems supplier to the aerospace, defence, industrial, and life sciences end markets. These technologies are increasingly critical to next-generation optical and sensing applications and we are excited to partner with Charlie Peppiatt (CEO), James Corte (CFO), and G&H's existing management team to address the rising needs of their growing customer base."
Broader Market Context
The acquisition is part of a recent trend of foreign takeovers of UK-listed firms, including easyJet, Intertek, and Tate & Lyle. The news comes as another South West firm also agreed a takeover by a larger international company on the same day.
