The competition to acquire British aerospace and defense company Senior Plc became less crowded Wednesday when private equity firm Arcline Investment Management withdrew from takeover discussions, leaving other potential buyers still in the running.
Senior Plc chose not to provide a statement when contacted for comment about the development. The company’s stock showed only slight gains as of Wednesday morning trading.
This acquisition attempt represents part of a broader trend of American private equity companies pursuing British firms during a period of heightened global defense spending driven by international conflicts and rising geopolitical tensions worldwide.
The aerospace supplier, which serves major clients including Lockheed Martin, generates approximately 16% of its total revenue from defense-related contracts.
Arcline Investment Management did not provide specific reasons for abandoning its pursuit of the company.
British takeover regulations now prohibit the private equity firm from attempting another acquisition approach for Senior Plc during the next six months, unless extraordinary circumstances arise.
Senior Plc previously turned down a 1.14 billion pound offer from Advent in early March. The company continues active discussions with both Advent and the joint Tinicum-Blackstone group regarding potential deals.
