Arlington completes Gooch & Housego buyout

Optical component and subsystem maker Gooch & Housego (G&H) is now officially part of Arlington Capital Partners, following completion of a deal announced in July.

Arlington, whose portfolio includes around 20 other firms operating in the aerospace and defense sector, acquired UK-headquartered G&H for £400 million in cash, including around £55 million to settle outstanding debts.

That agreement gained 80 per cent shareholder approval in August, and received clearance under the UK’s National Security and Investment Act last month. 

G&H’s CEO Charlie Peppiatt and CFO James Corte remain on board following the acquisition, although filings with the UK’s Companies House register indicate that five G&H directors - including the firm’s non-executive chairman Gary Bullard - have left.

Arlington’s managing partner Peter Manos is now a G&H director, alongside colleagues Mark Giragosian and Ben Ramundo.

Complex challenges

Employing around 1000 people across its mainly UK and US sites and subsidiaries, G&H is involved in three key industry verticals that utilize photonic components - defense, life sciences, and industrial lasers.

The firm’s most recent trading update showed that aerospace and defense applications accounted for 43 per cent of £82 million in total sales for the six months ending March 31, with industrial lasers at 37 per cent and life sciences the remaining 20 per cent.

“G&H occupies a unique position at the intersection of advanced photonics, precision manufacturing, and some of the most important technology applications of the coming decades,” said Manos in a statement announcing completion of the deal.

“[G&H]’s technologies play critical roles across defense, communications, and life sciences markets where performance, reliability and technical precision are paramount.”

Peppiatt added: “Becoming a private company marks an exciting new chapter for G&H. Arlington understands the highly technical markets in which we operate and shares our conviction in the long-term potential for our unique technology.”

The private equity firm says it intends to fuel future growth through investment across G&H’s UK and US manufacturing sites, targeting continued expansion of the aerospace and defense business and further strengthening of both the industrial and life sciences units.

Ramundo, Arlington’s managing director, noted: “G&H has spent more than 75 years developing technologies that solve extraordinarily complex challenges by controlling, manipulating and focusing light with exceptional precision.

“Consistent with Arlington’s growth-oriented investment philosophy, we are excited to leverage G&H’s deep expertise to build a world-class photonics and optics platform while maintaining the scientific precision and technical excellence that have defined the company for decades.”