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