Meggitt buy sees group near FTSE 100

Aeroplane parts supplier Meggitt has agreed to buy a component business from US firm Danaher for £428m, boosting its product range and propelling it towards the blue-chip FTSE 100 index.

Meggitt, which supplies products such as flight displays and wheels to planemakers Airbus and Boeing, raised 251m in a share placing to help fund the acquisition of the Pacific Scientific Aerospace (PSA) unit.

Evolution Securities analyst Guy Brown said: "There was some concern the company would over leverage with its next deal, however this deal is very comfortable for Meggitt," he added.

Meggitt said it had placed 69.8 million shares, equivalent to around 10 per cent of its existing share capital, at 359 pence per share, a 3 per cent discount to its closing share price on Monday.