Advent Said to Explore $4 Billion Sale of Naval Defense Business

Article content(Bloomberg) — Advent is exploring a sale of its Ultra Maritime business for more than £3 billion, as demand surges for naval defense companies amid conflicts from Iran to Ukraine, according to people familiar with the matter.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe buyout firm has been speaking to banks about a potential sale of the business, which could fetch upwards of £3 billion ($4 billion) based on projected earnings and peer valuations, said the people. The sale would likely kick off in the coming months and could attract interest from both strategic and private equity bidders, they said, asking not to be identified because discussions aren’t public. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentAdvent bought air-to-air refueling company Cobham Plc in a £4 billion deal in 2020 and then went on to purchase British defense firm Ultra Electronics Holdings Plc. The Boston-based buyout firm has subsequently sold most of Cobham and Ultra, generating lucrative returns. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentIt agreed in June to sell Ultra PCS, an England-based maker of ejection systems that help with dropping missiles, to aerospace firm Eaton Corp. for $1.55 billion.Article contentUltra Maritime focuses on anti-submarine warfare in the air, surface and undersea domains, including detection with sonobuoys, sonar systems and torpedo countermeasures, according to its website. The company supplies navies in the US, Canada, UK and Australia. Article contentDeliberations on Ultra Maritime are preliminary, no decision has been made on a sale process and Advent could opt to hold on to the asset for longer, the people said. A representative for Advent declined to comment, while Ultra Maritime didn’t immediately respond to queries. Article contentA potential sale of the business comes as investors pile into defense assets after the European Union pledged hundreds of billions of euros to build up the region’s defense industry and reduce dependence on the US. Article contentThe widening conflict in Iran has highlighted the particular importance of maritime defense, with the US saying recently that an American submarine sank a surfaced ship for the first time since World War II. There’s also been suspected underwater sabotage in the Baltic Sea amid Russia’s continuing conflict with Ukraine. Article contentTrending Posthaste: How $100 oil could do Canada's economy more harm than good News Canadians blasé about CUSMA misunderstand the market risks Investor IMF urges preparation for 'unthinkable' amid Mideast conflict Economy Here are 5 things worried investors can do as the Iran war plays out Investor Subscriber only. G7 to discuss joint release of emergency oil reserves as crude hits $100 Subscriber only Financial Times Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: How $100 oil could do Canada's economy more harm than good News Canadians blasé about CUSMA misunderstand the market risks Investor IMF urges preparation for 'unthinkable' amid Mideast conflict Economy Here are 5 things worried investors can do as the Iran war plays out Investor Subscriber only. G7 to discuss joint release of emergency oil reserves as crude hits $100 Subscriber only Financial Times