Cobham makes plenty for the military, from air-to-air refuelling kit to bomb-disposal machines. If only we could use some of its gear to disarm the jingoistic hysteria around its proposed takeover by private equity firm Advent Partners. Armchair generals claim the deal has grave implications for the security of our nation and the defence industry.
Baloney. Advent is based in the land of our closest ally, the US. It is inconceivable a country as paranoid about national security as America would not be a strong custodian of defence assets. If anything, it would be more robust against malign influences than Britain.
Or take Huawei; banned in the US on (dubious) security grounds, we Brits have been using it for years.
Advent is not buying Cobham to destroy a great British employer. It wants to grow it. Just like it did with Worldpay; bought for £2 billion, floated five years later for £5 billion. Or Brammer, bought in 2017 and expanded since through acquisitions.
Besides, Cobham is already primarily a US employer. Fewer than one in five staff work here.
The only real question is over price. At 165p a share, the bid is only 13 times forecast profits and feels stingy. But given that's a 50% premium on the previous three months and no rival bidders have emerged since, it looks like the best shareholders can expect.
