• PE and strategics interested in the business
• Ultra Maritime provides undersea warfare systems

Advent International-backed Ultra Electronics is expected to receive acquisition interest from potential buyers for its Ultra Maritime business if it comes up for sale, said three sources familiar with the matter.

In July, St. Louis-based industrial products maker ESCO Technologies Inc. [NYSE:ESE] agreed to buy Ultra Maritime’s Long Island, New York-based Signature Management & Power business for USD 550m. The business generates around USD 50m in EBITDA, as reported by this news service earlier this year. Lazard acted as sellside advisor on the transaction, while JPMorgan advised ESCO.

The three sources said there are buyers that are interested in the rest of Ultra Maritime, though they added it is not currently on the market. These sources said it’s possible the business comes to market later this year. One of the sources said both private equity firms and strategics are expected to show interest if Ultra Maritime comes up for sale. A sector advisor added that private equity firms with a maritime presence such as Arlington Capital Partners and Veritas Capital could make sense to look at the business. He noted the business could fetch a double-digit EBITDA multiple if it is sold.

Ultra Maritime is a provider of undersea warfare systems. With its presence in undersea warfare, one of the sources said the business is very attractive as national security becomes more of a focus in the world. The sector advisor added that anything maritime-related is in steep demand, noting spending is expected to increase in that subsector as demand increases.

Advent-backed aerospace technology company Cobham completed its GBP 2.5bn (USD 3.1bn) acquisition of Ultra Electronics in 2022. Advent acquired Cobham in 2020 for GBP 4bn (USD 5bn).

Advent International, Cobham and Ultra Electronics declined to comment.