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PRINT THIS PAGE UK mid-market buy-out specialist ECI Partners backs £52m Racal Acoustics MBO15/08/2005. Source: AltAssets. 
 UK mid-market buy-out specialist ECI Partners has backed the incumbent management team of Harrow-based Racal Acoustics in their £52m MBO. This investment represents ECI's first investment in the defence sector.
The business was acquired from J.F. Lehman & Co., a US-based private equity investor who acquired it from Thales Group in 2004. The management team will hold a substantial minority stake in the company going forward.
Racal Acoustics manufactures and supplies 'ruggedised' specialist personal communications equipment for the defence and avionics sectors. Its products range from military headsets and helmets, via handsets and microphones, field communication systems to lightweight headsets used by special forces.
ECI and Racal Acoustics plan to increase the value of the company through organic growth and substantial acquisitions of businesses selling complementary products into the military, avionics and security markets.
Ken Lindsay of ECI said, 'We have earmarked substantial additional equity funding to support management's acquisition plans and expect to spend up to a further £50m doing so.'
'The business is well positioned to benefit from a number of key trends in defence including the many soldier and military vehicle modernisation programmes worldwide as well as from greater use of light armoured vehicles. Its products are needed in all of these,' Lindsay added.
Racal Acoustics's incumbent management is led by managing director Geoff Eeles and includes sales director Terry Buckley and financial director David Watton. An independent chairman to the company is expected to be appointed in the near future.
Eeles commented, 'Racal Acoustics has a global brand and reputation built up over more than 50 years in a cautious market sector where a track record of product performance and reliability is paramount. We look forward to growing the business rapidly, selling exceptional products to assist solider and military modernisation programmes worldwide.'
ECI said in a statement that the firm expects to make further investments in the defence sector.
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