Meggitt has pension as target after £57.5m deal

Target Systems, the division being sold, provides unmanned aerial targets for military training in some 40 countries
Target Systems, the division being sold, provides unmanned aerial targets for military training in some 40 countries

Meggitt has sold its weapons training target provider to QinetiQ for £57.5 million.

The FTSE 250 British aerospace group said the sale was part of a move to “focus on businesses of scale in attractive markets”.

Target Systems, the division in question, provides unmanned aerial targets for military training in about 40 countries. It generated £26.1 million in sales and £4.9 million in earnings before interest, tax, depreciation and amortisation across 2015, and is expected to generate £28 million in sales and operator profit of £5.5 million this year.

Meggitt has pledged to pay £10.2 million of the £57.5 million it raises from the sale into its pension plan in an attempt to reduce the deficit.

QinetiQ — one of Britain’s leading defence technology companies