Advent International is in the early stages of evaluating strategic options for Ultra Precision Control Systems (Ultra PCS) as investor appetite for defence-related assets continues to surge, according to a report by Bloomberg citing sources familiar with the matter.
The private equity firm has begun preliminary discussions with potential advisers regarding a possible divestment of the business, which could be valued at approximately $1bn, the sources said.
However, deliberations remain at an early stage, no formal sale process has been initiated, and Advent may ultimately choose to retain the asset.
The Boston-based buyout firm acquired UK defence supplier Cobham in a £4bn ($5.2bn) deal in 2020, subsequently acquiring Ultra Electronics Holdings. Since then, Advent has divested most of Cobham, generating significant returns.
A potential sale of Ultra PCS comes amid heightened investor interest in the defence sector, following the European Union’s commitment to investing hundreds of billions of euros to strengthen regional defence capabilities and reduce reliance on US suppliers.
Geopolitical uncertainty, including former US President Donald Trump’s stance on NATO and Ukraine, has further fuelled this shift.
Ultra PCS supplies advanced military and aerospace solutions, including missile ejection systems, aircraft noise and vibration control technology, and ice-protection equipment for fighter jets such as the Lockheed Martin F-35, according to its website.
Separately, Advent has been exploring options for its Cobham Satcom business, which provides satellite communications and tracking antenna systems for military and maritime applications. The unit remains one of the last remaining Cobham assets still under Advent’s ownership.
