FURNACE PARTS: Ultra Electronics adds Furnace Parts to the mix

Ultra Electronics (a supplier of electronic and software technologies for the defence & aerospace, security & cyber, transport and energy markets) continues its acquisition programme with the purchase of Ohio based Furnace Parts LLC from Takoda Group LLC for a cash consideration of $12m.Ultra Electronics made its largest acquisition to date in August (see Ultra Electronics increases its electronic warfare capabilities); Furnace Parts is a small tuck in acquisition by comparison. The company's expertise in thermocouple-based temperature sensors in the nuclear and process control sectors will augment Ultra's specialist temperature sensing capabilities. In June Ultra revamped its operations and Furnace Parts will be integrated into Ultra's Nuclear Sensors & Process Instrumentation business which falls under the Aerospace & Infrastructure division.Ultra Electronics' strategy to enhance divisions' capabilities via acquisitions coupled with their internal R&D efforts is sound. The company's expertise in niche sectors should mean that it is a potential partner to prime contractors, especially in the defence market. But uncertainty regarding defence budgets in the US and UK continues to cast a dark cloud over the business.