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Parker Meggitt (legally Meggitt Ltd) is a British international company specialising in components and sub-systems for the aerospace, defence and selected energy markets. It was listed on the London Stock Exchange and was a constituent of the FTSE 100 Index until it was acquired by Parker Hannifin in September 2022.[5]

Key Information

History

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Origins

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The company's history spans back to multiple preceding businesses that were originally founded in both the nineteenth and twentieth centuries. Meggitt's own official history claims that the company's roots can be traced through to 1850 via the scientific instrumentation business Negretti and Zambra, which had, amongst other innovations, invented the world's first altimeter for the hot air balloon.[6]

During 1947, a new business was founded under the trading name Willson Lathes; it operated as a machine tool manufacturer based in Halifax, West Yorkshire.[6] That same year, Willson Lathes became a quoted public company. During 1964, Meggitt, a Dorset-based light engineering business, was wholly acquired by Willson Lathes; subsequently, management decided to change the company's name to Meggitt Holdings.[7]

1980–1999

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During 1983, Nigel McCorkell and Ken Coates, together with 3i Group, took control of Meggitt via a management buy-in.[6] The new management team soon embarked on a series of acquisitions, aimed at increasing the business' geographical diversity to become an international engineering company; it focused on speciality sectors within fields such as aerospace, controls, electronics and energy.[6] During 1985, Meggitt Holdings acquired London-based avionics specialist Negretti and Zambra.[6][8] In 1986, the company bought the engineering interest Bestobell, which had historically focused on aviation air ducting and sealing solutions.[9]

Following the appointment of Michael Stacey as the CEO of Meggitt Holdings in 1990,[10] the company was reorganised to focus its efforts around three core markets: aerospace, defence systems and electronics.[11] Further acquisitions were conducted during the 1990s. In 1992, Meggitt acquired sensor specialist firm Endevco, specialists in sensors for test and measurement applications.[6] During 1998, engine diagnostics specialist Vibro-Meter was also acquired to improve the company's portfolio of condition monitoring capabilities. In the following year, Californian aviation aftermarket support firm Whittaker Corporation was also acquired by Meggitt for $380m.[12][6]

During July 1997, Meggitt received their first contract from American commercial airline manufacturer Boeing to provide solid-state clocks for the Boeing 737; separately, it was contracted to provide the secondary flight display system for the Lockheed Martin F-35 Lightning II.[13] That same year Spanish aviation company CASA appointed it to supply the air ducting system for its new C-295 utility transport aircraft.[14] In 1998, Raytheon Aircraft awarded the company a contract to supply solid state altimeters and secondary flight display systems for numerous business aircraft, including the Beech King Air, Beech 1900D, Hawker 800XP and Hawker Horizon, in its lineup.[15] Later that year, Boeing announced that Meggitt would be its sole supplier of solid-state electronic standby instrumentation for all of its airlines.[16]

2000–2009

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During 2001, a new CEO, Terry Twigger, took over at Meggitt. The company continued to expand through numerous acquisitions throughout the 2000s. In 2002, it arranged to acquire Lodge (Brothers), a British manufacturer of speed and temperature sensors for aero engines, from Smiths Aerospace.[17] During the following year, Meggitt bought Western Design, which manufactured automated ammunition-handling apparatus and environmental control systems. In 2003, it acquired Caswell International, a provider of high-tech live fire training systems.[6] During 2004, the company, in cooperation with The Carlyle Group, bought the Dunlop Standard Aerospace Group's design and manufacturing divisions; the deal included Dunlop Aerospace Braking Systems, Dunlop Ice Protection & Composites, Dunlop Precision Rubber; Dunlop Equipment, Serck Aviation, and Stewart Warner South Wind.[18][19] This rapid acquisition rate led to Meggitt's high increases in annual revenue around this period.[20]

During 2005, Meggitt acquired sensors and electronics specialist Sensorex; that same year, it also bought ECET, an airborne electronic equipment and ignition systems manufacturer, as well as refuelling equipment specialist Avery-Hardoll.[6] In 2006, the company purchased both simulation provider Firearms Training Systems and compressor producer Airdynamics. By this point, the North American market comprised around 50 per cent of the firm's revenue stream.[21] A year later, Meggitt acquired K&F Industries, the parent company of the Aircraft Braking Systems Corporation.[22] During 2008, it bought Ferroperm Piezoceramics A/S, which manufactured high quality piezoceramic materials for sensors.[6]

The company launched several products throughout the decade, such as the Meggitt Avionics new Generation Integrated Cockpit (MAGIC) for business aircraft,[23][24] bleed air leak detection (BALD) system,[25] and its Electro-Thermal-based Ice Protection (ETIP) system, often choosing to promote its latest entries at the biennial Farnborough Air Show.[26] Meggitt has been a long time supplier of Brazilian aircraft manufacturer Embraer; in 2018, it was announced that the company had been selected to provide various systems, including the pneumatic bleed air system, brake control system, and carbon brake units, of the firm's Legacy 450/500 business jet.[27] Meggitt's vibration monitoring system was also integrated into multiple platforms, including the CFM International CFM56, General Electric GEnx, Rolls-Royce Trent and PowerJet SaM146 turbofan engines, amongst others.[28][29]

2010–2020

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Meggitt facility at Miami, Florida, United States

In 2010, the company restructured itself into five new divisions; consequently, all business units of Meggitt have operated thereafter through divisional management.[6]

In 2011, Meggitt acquired the Pacific Scientific Aerospace Group, a component supplier of both civilian and military aerospace sectors;[30] this acquisition included Securaplane Technologies Inc., an aerospace camera and battery supplier involved in producing GS Yuasa's batteries for the Boeing 787 Dreamliner fleet, which was grounded in January 2013 due to multiple onboard battery fires.[31] Subsequent investigation found that the charger was not at fault for the battery defects, clearing Meggitt products of culpability for the fires.[32][33]

During 2013, Meggitt's finance director, Stephen Young, took over as its CEO following Terry Twigger's retirement.[34] In 2016, Tony Wood joined Meggitt as its CEO, becoming Chief Executive during the following year after Stephen Young's retirement.[35]

During 2015, the company began to build up its composites division via the acquisition of British manufacturer EDAC, as well as the advanced composites division of Cobham PLC.[36][6]

In 2018, Meggitt announced plans to relocate its UK headquarters from Bournemouth Airport to a purpose-built facility in Ansty, Warwickshire.[37]

In 2021, Parker Hannifin made an offer for the company, valuing it at £6.3 billion.[38] The transaction was approved by the UK Court on 9 September 2022, and the acquisition completed on 13 September.[39][40]

Products

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Products include a series of target drones, the Meggitt Banshee,[41] sold to QinetiQ in 2016 for £57.5 million.[42]

See also

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References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Meggitt

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from Grokipedia
Meggitt PLC was a British multinational engineering company that designed and manufactured high-performance components and sub-systems primarily for , defence, and selected energy applications, including aircraft braking systems, equipment, and control valves. Originating from the 1850-founded Negretti & Zambra, which developed the world's first , Meggitt grew into an FTSE-listed group with over 11,000 employees across facilities in , , and before its acquisition. In September 2022, Parker Hannifin Corporation completed its £6.3 billion acquisition of Meggitt, nearly doubling the size of Parker's aerospace segment and rebranding the entity as Parker Meggitt to leverage complementary technologies in thermal management, sensing, and aftermarket services.

History

Origins and Founding

Meggitt PLC traces its corporate origins to 1947, when it was established as Willson Lathes, a machine tool manufacturer based in Halifax, West Yorkshire, England. The company began operations producing lathes and other precision engineering tools, reflecting the post-World War II demand for industrial machinery in the UK. That same year, Willson Lathes was floated as a publicly quoted company on the London Stock Exchange, marking its early entry into the public markets. In 1964, Willson Lathes executed a of Meggitt Engineering Ltd., a smaller general light engineering firm founded earlier in the . This acquisition shifted the company's focus toward diversified engineering applications and resulted in the adoption of the Meggitt name, which has been retained since. The move broadened Meggitt's scope beyond machine tools into areas like components for and defense, setting the stage for its later specialization. While Meggitt's official narratives sometimes reference mid-19th-century antecedents through subsequent acquisitions—such as scientific instrumentation from Negretti and Zambra dating to —the entity's formal founding and initial public listing occurred in 1947, with no single named founder documented in primary records. This timeline underscores the company's evolution from a regional toolmaker to a global engineering group via strategic mergers rather than organic inception from earlier entities.

Expansion in the Late 20th Century

In the early , Meggitt faced financial challenges, recording a loss of £180,000 on sales of £4 million in 1983. A management buy-in led by Nigel McCorkell and Ken Coates, supported by 3i Group, took control that year, initiating a strategic turnaround focused on building a geographically diverse company specializing in , controls, and sectors. The post-buy-in period marked aggressive expansion through acquisitions. In 1984, Meggitt acquired Insley for £2.5 million and Filtration & Transfer for £1 million, achieving a profit of £354,000. The following year, the purchase of for £3.5 million drove sales growth of 75 percent to £28 million, with profits surpassing £2 million. By 1986, a hostile takeover of Bestobell—a larger group with aerospace components used on —for £86 million propelled sales to £167 million by 1987, significantly broadening Meggitt's capabilities in defense and aviation. Further deals in 1988 included the Microsystems Group for £33 million and Sunvic, yielding pretax profits of £16 million; in 1989, Citec was added for £5 million. The 1990s saw continued diversification into high-technology areas, particularly sensors and aftermarket services. In 1991, pretax profits reached £23.5 million on £302 million in , despite cutting 1,200 jobs amid . Key 1992 acquisitions were Endevco for US$53 million, specializing in test and measurement sensors, and Howmar. hit £327 million in 1993 after BTR divested its 17.2 percent stake. Under new managing director Mike Stacey from 1995, Meggitt reorganized around core , defense systems, and businesses, closing 16 underperforming units. Acquisitions like Cartwright in 1996 and Vibro-Meter SA in 1998 enhanced engine monitoring technologies, with pretax profits climbing to £35.4 million on £293.9 million . The decade culminated in the 1999 purchase of Whittaker Corporation for US$380 million, strengthening aftermarket repair and overhaul for components. This era transformed Meggitt from a struggling general firm into a focused player in specialized and defense markets, with pretax profits reaching £50.7 million on £346.5 million by year-end.

Growth and Diversification (2000–2009)

During the 2000s, Meggitt pursued a of targeted acquisitions and disposals to bolster its core competencies in and defense, aiming to balance its operational footprint between the and markets while enhancing exposure to both civil and sectors. This period marked a shift toward greater diversification in technologies such as sensors, braking systems, and products, complementing in existing product lines. Under CEO Twigger, who assumed leadership in 2001, the company executed a series of deals that expanded its aftermarket services and technological capabilities, contributing to record financial performance by mid-decade. Key acquisitions began in 2002 with Lodge, a specialist in speed and sensors for aero engines, which strengthened Meggitt's sensing technologies for harsh environments. In 2003, the company acquired , focusing on ammunition-handling equipment and environmental control systems, and Caswell International, a provider of ground-based live training systems, thereby diversifying into defense solutions. The following year, 2004, saw the largest deal of the era: the acquisition of Dunlop Standard Aerospace Group's design and manufacturing division, encompassing entities like Dunlop Aerospace Braking Systems, Dunlop Ice Protection & Composites, and Serck , which significantly enhanced Meggitt's braking and composites expertise in civil . This move, in partnership with , supported strong underlying organic growth and integration synergies. Diversification accelerated in 2005 through purchases of Sensorex for sensors and , ECET for ignition systems and airborne electronics, and Avery-Hardoll for refuelling equipment, broadening Meggitt's portfolio in and management systems. By 2006, the acquisition of Firearms Training Systems added simulation products for training, further embedding Meggitt in defense applications. In 2007, K&F Industries—parent of Aircraft Braking Systems Corporation—was integrated, reinforcing braking technologies with a focus on contracts. The decade closed with the 2008 buyout of Ferroperm Piezoceramics A/S, introducing advanced piezoceramic materials for sensing in extreme conditions. These transactions, alongside selective disposals of non-core assets, improved Meggitt's geographic and sectoral balance, with enhanced presence and a tilt toward high-growth civil aftermarkets. The strategy yielded robust results, including excellent performance from integrated acquisitions and sustained revenue expansion, positioning Meggitt as a more resilient player amid fluctuating defense spending.

Modern Developments and Acquisitions (2010–2021)

In 2010, Meggitt underwent a significant reorganization, its operations into five divisions: Aircraft Braking Systems, Aircraft Dynamics, Sensing Systems, Equipment Group, and Polymers & Composites, with business units reconfigured as facilities reporting directly to divisional management to enhance operational efficiency and focus on core and defense technologies. On April 21, 2011, Meggitt completed the acquisition of Pacific Scientific Aerospace from for $685 million in cash, incorporating subsidiaries such as Securaplane Technologies Inc., OECO LLC, Artus, and TFE Electronics, which strengthened its capabilities in safety systems, including emergency evacuation slides, restraint systems, and oxygen equipment. In 2015, Meggitt expanded its composites portfolio through two key purchases: the acquisition of British manufacturer EDAC, enhancing and civil sealing technologies, and the advanced composites business of Cobham PLC for $200 million in November, adding expertise in composite structures for aircraft applications. March 2017 saw Meggitt acquire Elite Aerospace, a U.S.-based provider of test equipment and instrumentation for testing, further bolstering its aftermarket services and integration into existing facilities to support growth in and sectors. Throughout the decade, Meggitt invested in , with expenditures reaching £71 million in 2021 (4.7% of revenue), prioritizing innovations in lithium-ion batteries, , and high-performance sub-systems amid challenges like disruptions and impacts, while deriving over 80% of revenue from core and defense markets by 2021.

Acquisition by Parker Hannifin and Integration

Parker-Hannifin Corporation announced its intent to acquire Meggitt PLC on August 2, 2021, in a transaction valuing Meggitt's fully diluted share capital at approximately £6.3 billion (about $8.8 billion USD), with shareholders receiving 800 pence per share. The deal aimed to nearly double the size of Parker's Aerospace Systems segment by integrating Meggitt's expertise in aerospace, defense, and energy technologies, enhancing capabilities in areas such as braking systems, actuation, and sensors. Parker projected pre-tax synergies of $300 million annually by the third year post-acquisition, primarily through cost reductions via its Win Strategy™ operational framework, supply chain optimizations, and overhead efficiencies, at an estimated one-time integration cost of $240 million. Regulatory approvals proceeded with conditions, including clearance from the Department for Business, Energy & Industrial Strategy on July 19, 2022, following legally binding commitments from Parker to maintain certain UK-based capabilities and levels. The approved the deal on April 11, 2022, contingent on divestitures to address competition concerns in wheel-and-brake systems. Meggitt shareholders approved the acquisition on September 22, 2021. The acquisition closed on , 2022, integrating Meggitt into Parker's Aerospace Group to broaden its portfolio in defense and commercial markets, including growth in electric and sustainable technologies. Post-closure, Parker established joint integration teams comprising leaders from both companies, deploying over 20 cross-functional groups to manage the transition, focusing on operational alignment, IT systems harmonization, and under Parker's management principles. Integration progressed steadily, with credit rating agency Fitch noting successful advancements and debt reduction tied to the deal by December 2023. Parker incurred ongoing integration charges, recorded in fiscal years 2023 through 2025, covering restructuring, facility consolidations, and related expenses. As part of post-merger adjustments, Parker divested Meggitt's Composites and Fuel Containment Division to SK Capital Partners in July 2024, streamlining the combined entity's focus on core motion and control technologies. By mid-2025, the integration supported Parker's broader diversification into high-growth areas like , though full synergy realization remained subject to execution risks such as disruptions.

Products and Technologies

Aerospace Systems

Meggitt's aerospace systems encompass a range of components and sub-systems designed for civil and , including braking, thermal management, sensing, and fluid systems, with products installed on nearly every , regional aircraft, and in service. The civil segment historically accounted for approximately 54% of the company's revenue, emphasizing reliability in extreme environments. Following the 2022 acquisition by for £6.3 billion, these capabilities integrated into Parker , expanding offerings in more-electric architectures, advanced sensors, and sustainable technologies for net-zero emissions goals. Key technologies include braking systems, where Meggitt pioneered the first and electrical braking systems for commercial , alongside carbon and steel with over 20 years of in-service accumulation for carbon variants. Wheels and feature tyre pressure monitoring for enhanced and , supporting platforms from business jets to wide-body airliners. Thermal management systems address heat dissipation in engines and airframes, while oxygen systems ensure crew and passenger safety during decompression. Fuel systems and tanks incorporate inerting and lubrication solutions to prevent fires and optimize performance, often using polymers and composites for seals, flexible tanks, coatings, and ice protection structures. Sensing and technologies provide vibration analysis, health monitoring, and for , deployed by major manufacturers worldwide. Additional systems cover cameras for , , , and generation, serving over 73,000 through a exceeding 9,000 across 40+ facilities. These integrations enhance Parker Hannifin's position in resilient markets, focusing on advanced air mobility and engine valve actuation.

Defense and Security Solutions

Meggitt's defense solutions primarily involve engineered components for platforms, including braking systems, management, and control technologies designed for extreme operational environments. The company supplies wheels, brakes, and brake control systems for fixed-wing and rotary-wing aircraft, with equipment installed on approximately 22,000 such platforms worldwide, as well as ground vehicles and training systems. These systems are integrated into high-profile programs such as the F-35 Joint Strike Fighter, (EF2000), , and Airbus A400M transport aircraft, providing reliable performance in combat and transport missions. In thermal management, Meggitt Defense Systems—now under —specializes in fans, pumps, compressors, and integrated cooling solutions for and defense applications, ensuring equipment functionality in harsh conditions like high altitudes and zones. Aeromechanical systems include payloads, control architectures, and free-flying drone technologies, emphasizing cost-effectiveness and reliability for unmanned operations. Additional offerings encompass , fuel and control valves, and monitoring for health, supporting overall platform and . Security solutions focus on protection and monitoring, such as the PreFlite , which enables real-time status tracking via smartphones for operators globally, enhancing ground against unauthorized access or tampering. High-definition cameras and video imaging further support airborne on and business jets, aiding in threat detection and operational awareness. These technologies underscore Meggitt's role in bolstering defense readiness through specialized, battle-tested subsystems.

Energy and Industrial Applications

Meggitt Sensing Systems offers and monitoring solutions tailored for applications, including sensors for detecting , , and air gap in rotating machinery such as turbines and generators. These systems enable and fault detection to enhance operational efficiency and prevent downtime in power plants. In power generation, Meggitt provides sensing technologies, control valves, and heat exchangers designed to optimize performance in , gas, nuclear, and hydroelectric facilities, supporting remote monitoring to minimize regulatory risks and ensure . The company's offerings extend to oil and gas operations, where products like sensors measure pulsations in compressors and chambers, aiding in the efficient production and of resources. Additionally, Meggitt supports emerging clean-energy technologies through specialized monitoring for novel power sources. For industrial applications, Meggitt's portfolio includes robust accelerometers and sensors suited for harsh environments in process control and , with systems like the VM600 rack-based machinery platform and VibroSmart distributed monitoring integrating from multiple sensors for real-time . These tools, including combustor sensors and monitoring systems, are deployed to safeguard in energy-intensive industries beyond power generation, such as . Meggitt's industrial sensors emphasize high reliability, with lifetime warranties on select Wilcoxon Research models, facilitating long-term deployment in demanding operational settings.

Operations and Global Presence

Manufacturing Facilities and Supply Chain

Parker Meggitt maintains a global network of over 37 manufacturing facilities, integrated into Parker Hannifin's Aerospace Group following the September 2022 acquisition, which preserved key sites while enhancing operational synergies. These facilities produce high-performance components such as braking systems, sensors, and thermal management solutions, adhering to ISO/EN 9100 quality standards across sites equipped for advanced processes like precision and composite fabrication. Major production hubs include the EMEA regional center at Ansty Business Park, , , focusing on and defense subsystems with integrated research capabilities; the Americas hub in , , supporting assembly and testing; and the Asia-Pacific hub in for regional manufacturing and service. In the United States, dedicated sites handle specialized output, such as carbon brake discs at a facility in , and aircraft braking systems in . European operations feature sensing and vibration monitoring production in , , while additional sites exist in , , and various U.S. locations including , , and .
RegionKey Manufacturing SitesPrimary Focus
EMEA; Aerospace subsystems, sensors
AmericasAkron, OH; ; Danville, KYBraking systems, assembly
Asia-Pacific; Regional production, components
Meggitt's emphasizes risk mitigation and regulatory compliance, mandating suppliers to maintain or ISO 9001 certifications, monitor sub-tier chains for legal adherence, and notify of changes like work transfers at least six months in advance. The company requires counterparties to combat issues such as through detection procedures in U.S. contracts and reduces commercial intermediaries to minimize exposure. Disruptions, including COVID-19-related delays and broader 2021 supply constraints, have periodically constrained output and revenue, prompting financial support for suppliers and proactive inventory management.

Research and Development Efforts

Meggitt invested £70.2 million in research and development in , equivalent to 4.7% of group revenue, down from £97.9 million or 5.8% in 2020, with a long-term target of 5% to 7% of revenue annually. The company directed at least two-thirds of its innovation budget toward sustainable and low-carbon technologies, achieving 81% allocation to such efforts in , exceeding internal goals. This emphasis supported decarbonization initiatives, including lighter structures, efficient systems, and compatibility with sustainable aviation fuels like e-fuels and . In aerospace, R&D prioritized next-generation components, such as exchangers produced via metal in partnership with HiETA Technologies, which Meggitt fully acquired in January 2022 following an initial investment in 2020. Collaborations with on the ZEROe program and testing of green fire suppression agents like VERDAGENT® and CF3I with and advanced thermal management and safety systems. Additional projects included high-temperature optical sensors for monitoring, combustion evaluation, and electric propulsion technologies such as lithium-ion batteries and energy buffers. Innovations like PiezoPaint, a thin piezoceramic for de-icing via vibrational frequencies, addressed operational challenges in extreme conditions. Defense-oriented R&D focused on robust sensing, thermal control, and subsystem integration for platforms, including accelerometers, , and equipment for over 22,000 and ground vehicles. Developments emphasized customer-funded programs for valves, sensors, and heat exchangers, with modest internal upfront costs to ensure adaptability in defense economics. Parker Meggitt's applied involved cross-divisional days to align on roadmaps and business opportunities in harsh environments. Meggitt operated facilities within its global footprint of over 37 sites and offices, including specialized R&D departments for aeronautical in locations like Avrillé, . A Advisory Board, comprising internal leaders and external experts, guided disruptive technology prioritization and roadmaps across and defense. Post-acquisition by in September 2022, these efforts integrated into broader innovation pipelines for enhanced product offerings.

Key Customers and Contracts

Meggitt served a diverse array of customers in the aerospace, defense, and selected energy markets, with major clients including , , , Bombardier, , , Finmeccanica (now Leonardo), , , , and . These relationships focused on supplying high-performance components such as braking systems, sensors, thermal management solutions, and cockpit indicators for commercial and military aircraft, ground vehicles, and industrial applications. In aerospace, represented a key partner, with Meggitt securing a long-term, multi-million-pound in March 2021 for cockpit indicators across all variants of the 737 MAX program, expanding its content on the platform. and other manufacturers like Bombardier and relied on Meggitt for braking and actuation systems, while airlines such as Delta integrated its aftermarket parts for maintenance. Defense contracts highlighted Meggitt's role in military programs, including a three-year agreement signed in August 2019 with valued at approximately $65 million for rudder pedal assemblies on the F-35 Lightning II joint strike fighter. Additionally, awarded Meggitt a $16.5 million in 2019 for lightweight fuel bladders on the C-130J Super , with deliveries starting in 2020. Broader defense deals included two agreements in 2019 totaling $85 million with and the U.S. for jet-related components. With , Meggitt secured a $26 million for management systems on ground vehicles, alongside a separate multi-million-dollar award for advanced cooling systems. These contracts underscored Meggitt's emphasis on technologically differentiated, certified products for high-reliability applications, often involving long-term supply agreements to support ongoing production and sustainment.

Financial Performance and Market Position

Meggitt's expanded significantly from £1,554 million in 2014 to a peak of £2,276 million in 2019, driven by in its core and defense segments, supplemented by strategic acquisitions and favorable foreign exchange effects. This growth reflected robust demand for aircraft braking systems, sensors, and defense equipment, with the civil original equipment and aftermarket segments contributing to double-digit organic increases in certain years. The onset of the in 2020 severely disrupted , leading to a 26% revenue decline to £1,684 million that year, as air traffic plummeted and OEM production rates fell. Revenue further contracted by 12% to £1,489 million in 2021, with civil aerospace sales dropping over 40% organically amid prolonged recovery delays, though defense revenues held steady at around 40% of total sales. By the first half of 2022, prior to Parker Hannifin's acquisition in , revenue rebounded 21% to £821 million, signaling nascent recovery in demand. Underlying operating profit mirrored revenue trends, rising from £367 million in 2018 to £403 million in 2019 on improved margins from higher-volume defense and aftermarket activities. effects halved profits to £191 million in 2020 and £177 million in 2021, as fixed costs and strains eroded margins to around 12%, down from 18% pre-crisis; management attributed this to lumpy civil OEM deferrals rather than structural weaknesses in defense or energy markets.
YearRevenue (£ million)Underlying Operating Profit (£ million)
20182,081367
20192,276403
20201,684191
20211,489177
These figures, derived from Meggitt's statutory reports, exclude one-off items like impairments and to reflect core trading performance, though reported profits were lower due to COVID-related write-downs exceeding £370 million in 2020. Overall, the trends underscored Meggitt's vulnerability to cyclical civil exposure, comprising over 50% of , balanced by resilient defense contracts that provided stability during downturns.

Stock Listing and Valuation

Meggitt PLC shares were listed on the London Stock Exchange's main market under the MGGT. The company also traded as an (ADR) on the over-the-counter market under the symbol MEGGY, with a last recorded price of $17.65. In August 2021, Corporation announced its acquisition of Meggitt for £6.3 billion (approximately $8.8 billion at prevailing exchange rates), offering 800 pence per share in cash. The deal, which valued the enterprise at an estimated multiple reflecting its and defense portfolio, was completed on September 13, 2022. Following the acquisition's closure, Meggitt's shares were delisted from the London Stock Exchange on , 2022, ending public trading. Prior to delisting, the company's stood at approximately $7.35 billion. As a of , Meggitt no longer maintains an independent stock listing or public valuation metric.

Economic Impact and Employment

Meggitt employed more than 9,000 people across 36 operating facilities worldwide as of early 2022, primarily in , , and roles supporting , defense, and sectors. The company's global workforce contributed to an annual revenue of approximately £1.63 billion for the 12 months ending June 30, 2022, with operations generating economic value through high-skilled jobs, supply chain expenditures, and exports of specialized components. In the UK, where Meggitt was headquartered in , it sustained around 2,300 positions, bolstering local economies in aerospace hubs via direct and indirect effects from and R&D investments. Specific expansions underscored Meggitt's role in regional job growth; for instance, in 2017, its Polymers & Composites division announced plans to add 211 manufacturing jobs in , enhancing the area's industrial base with investments in environmental control systems production. Similarly, in 2019, the company committed $82.7 million to expand carbon brake manufacturing in , creating 83 new positions and building on an existing workforce exceeding 200, which supported components amid rising demand. These initiatives exemplified Meggitt's contributions to skilled labor markets, with average employee compensation around $64,829 annually in the , reflecting premiums for technical expertise in defense and . Following Parker Hannifin's acquisition in September 2022, Meggitt's operations integrated into a larger entity, preserving while potentially amplifying economic multipliers through enhanced global supply chains; however, pre-acquisition highlights the firm's standalone impact, including maintenance of R&D spending that fostered innovation-driven growth in host communities.

Controversies and Regulatory Issues

Export Control Violations

In 2013, Meggitt-USA, Inc., a of the UK-based Meggitt PLC, entered into a consent agreement with the U.S. Department of State to resolve allegations of multiple violations of the (AECA) and the (ITAR). The company had self-disclosed hundreds of potential violations dating back to the mid-1990s, involving unauthorized exports, re-exports, and transfers of defense articles, technical data, and defense services to foreign persons without required licenses or authorizations. These infractions occurred across various Meggitt subsidiaries and business units, primarily related to components and equipment for and defense applications. Under the 30-month consent agreement effective August 23, 2013, Meggitt-USA agreed to a of $25 million, with $3 million payable upfront and the remaining $22 million suspended contingent on compliance with remedial measures, including enhanced compliance programs, , and audits. The State Department's Directorate of Defense Trade Controls (DDTC) determined that debarment from privileges was not warranted, citing Meggitt's voluntary disclosures and during the . No further significant violations by Meggitt entities have been publicly reported since the settlement.

Pricing and Contracting Disputes

In 2015, a U.S. Department of Defense audit determined that the (DLA) failed to obtain fair and reasonable prices for sole-source commercial spare parts, such as aircraft brakes, wheels, and related components, purchased from Meggitt Aircraft Braking Systems (MABS) subsidiaries. The review examined 54 parts across contracts awarded in 2013 and found pricing inadequacies in 51 cases, stemming from DLA's reliance on previously inflated contract prices without sufficient analysis under (FAR) requirements for commercial items. Specific issues included inadequate evaluation of MABS sales data for "" equivalents and acceptance of escalated prices for adjusted quantities without competitive benchmarking. The quantified overpayments, estimating that DLA had already paid approximately $8.5 million excess on $17 million for 32 sampled parts between September 1, 2013, and November 30, 2014. Projections indicated potential future overpayments of up to $70.5 million on 47 parts over the contracts' remaining terms, with a five-year total exceeding $106.8 million on $294.9 million in anticipated spending. Contributing factors included MABS's refusal to submit uncertified cost or pricing data despite repeated DLA requests and escalations to higher contracting authorities, as mandated by FAR provisions for sole-source acquisitions lacking adequate . DLA contracting officers ceased pursuing compliance after initial non-responses, allowing negotiations to proceed on unverified terms. No formal litigation, such as under the False Claims Act, directly arose from these pricing determinations, though the findings highlighted systemic challenges in DoD sole-source contracting with defense suppliers like Meggitt. The report recommended enhanced DLA procedures for price reasonableness, including better use of and data demands, to mitigate risks in future awards. These issues were later cited in as examples of broader pricing vulnerabilities in parts procurement. The proposed acquisition of Meggitt plc by Parker-Hannifin , announced in August 2021 and valued at approximately £6.3 billion ($8.6 billion at the time), faced regulatory scrutiny primarily from and authorities over and competition implications. In October 2021, the government issued a public interest intervention notice under the Enterprise Act 2002 to examine potential risks to arising from the transfer of control of Meggitt's defense-related assets and technologies to a U.S.-based entity. National security concerns centered on Meggitt's role as a supplier of critical aerospace and defense components, including sensors, braking systems, and electronics used by the UK Ministry of Defence (MoD), with technologies featuring dual-use applications that could impact defense supply chains and sensitive information handling. The UK Department for Business, Energy & Industrial Strategy (BEIS) consulted stakeholders until July 13, 2022, after which Business Secretary Kwasi Kwarteng accepted undertakings from Parker-Hannifin on July 19, 2022, to mitigate these risks. These included commitments to maintain security of supply, notify the MoD of changes affecting defense contracts, establish UK-majority boards for sensitive operations with enhanced information security protocols, and develop a sovereign capability plan for non-ITAR-restricted (U.S. export-controlled) products. Competition concerns were investigated by the UK Competition and Markets Authority (CMA) in Phase 1, which identified potential substantial lessening of competition in specific aerospace markets, leading to no referral for Phase 2 review upon acceptance of remedies on July 19, 2022. Separately, the European Commission approved the deal on April 10, 2022, under the EU Merger Regulation, conditional on Parker-Hannifin divesting its entire aircraft wheels and brakes division to an independent buyer to preserve competition in aftermarket services for commercial and military aircraft. These measures addressed overlapping portfolios in braking systems and related components. The acquisition proceeded to close in September 2022 following these clearances.

References

  1. https://www.meggitt.com/
  2. https://www.meggitt.com/resources/Meggitt_Fact_Sheet.pdf
  3. https://www.meggitt.com/about-us/our-company/company-history/
  4. https://www.meggitt.com/investors/about-us/
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