Cobham Share News (COB)

LONDON (Alliance News) - Cobham PLC said Friday it completed the sale of its AvComm and Wireless test and measurement businesses for USD455 million in cash to NASDAQ-listed Viavi Solutions Inc.

The sale - agreed in February - followed Cobham reviewing the future for its test and measurement business and deciding divestment was the "best way to generate shareholder value and bring strategic benefits" to the FTSE 250-listed aerospace and defence firm.

In 2017, the two units generated GBP170 million in revenue and GBP25 million in underlying operating profit. Cobham in total generated GBP2.05 billion in revenue and GBP210.3 million in underlying operating profit over the same period.

In February, Cobham said it planned to use the proceeds from the sale - alongside existing cash balances - to pay down GBP440 million in debt.

Cobham Chief Executive Officer David Lockwood said the sale was a "good deal for Cobham shareholders, as we can now focus on delivering value-add technology and capabilities to our defence, aerospace and space customers, supported by a more resilient balance sheet."

Cobham shares were up 0.2% at 130.85 pence early Friday.