Advent International is exploring strategic options for Ultra Precision Control Systems (Ultra PCS) as investor interest in defence assets rises.

According to Bloomberg, the private equity firm has started preliminary discussions with advisers regarding a possible divestment, valuing the business at approximately $1bn. However, no formal sale process has been initiated, and Advent may ultimately retain the asset.

The Boston-based firm acquired UK defence supplier Cobham in a £4bn ($5.2bn) deal in 2020 and later purchased Ultra Electronics Holdings. Since then, Advent has divested most of Cobham, generating significant returns. The potential sale of Ultra PCS comes at a time when the European Union is committing billions to strengthen regional defence capabilities and reduce reliance on US suppliers. Rising geopolitical uncertainty, including Donald Trump’s stance on NATO and Ukraine, has further fuelled investor demand in the sector.

Ultra PCS develops advanced military and aerospace solutions, including missile ejection systems, aircraft noise and vibration control technology, and ice-protection equipment for fighter jets like the Lockheed Martin F-35.

In a separate move, Advent is also assessing options for Cobham Satcom, a provider of satellite communications and tracking antenna systems for military and maritime applications. It remains one of the last Cobham assets still under Advent’s ownership.

As defence spending increases globally, private equity firms continue to target high-value aerospace and military technology businesses, with Advent potentially positioning itself for another significant exit.

Source: Bloomberg