Chelton Microwave Acquires REMEC's Defense & Space Subsidiary For $260 Million

Bolton, MA -- Cobham, a wholly owned subsidiary of Cobham, PLC, announced a definitive agreement for the purchase of REMEC Defense and Space Inc. (RDS), a wholly owned subsidiary of REMEC, Inc.

Located in San Diego and with approximately $100 million of annual sales, RDS develops and manufactures state-of-the-art solid state integrated microwave assemblies (IMA) and subsystems. The unit employs 1,100 workers in San Diego, Mexico, and Richardson, TX.

RDS will complement Chelton Microwave's current leadership position as an antenna subsystem and waveguide integrated assembly provider. Specifically, RDS' solid state subsystem capability will complement Chelton Solid State (CSS) capabilities by enhancing CSS's ability to pursue higher levels of assemblies such as transceivers, channelizers, and receivers. Furthermore, REMEC's MMIC design facility will provide millimeter multilayer transceivers and T/R modules, which will make Chelton a viable supplier for high performance antenna front-ends.

The transaction, which must be approved by government regulators and REMEC shareholders, is expected to close at the end of the first quarter of 2005. RDS will maintain its current name and will operate as a division of Chelton Microwave. Jack Giles will continue to lead the company. Current employees will remain with the business, and operations will continue at the present facilities in San Diego, Mexico, and Richardson.

"The acquisition of REMEC Defense and Space is a continuation of our strategy to expand our microwave capability into higher levels of integrated microwave assemblies and subsystems in an effort to expand our offerings to our customers," David Gaggin, CEO of Chelton Microwave, said. "This fulfills a long sought after complement to our antenna and passive waveguide business."

Source: Chelton Microwave