Gooch & Housego Shares Soar After £345.6m Private Equity Takeover

Shares in Gooch & Housego (LON: GHH) jumped sharply on Thursday after the AIM-listed photonics specialist agreed to a recommended cash takeover by Greenlight Bidco, a vehicle backed by US private equity firm Arlington Capital Partners (ACP).

Under the deal, G&H shareholders will receive 1,230.0p in cash per share, plus a 4.9p interim dividend already declared, taking the total value to 1,234.9p per share.

That represents a 40.7% premium to Wednesday’s closing price of 874.0p, valuing the Ilminster-based group’s equity at approximately £345.6 million and implying an enterprise value of £400.5 million, or 25.9 times adjusted operating profit.

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The board, advised by Investec and Rothschild & Co, has unanimously recommended the offer, with directors holding 119,582 shares (0.44% of the company) giving irrevocable undertakings to vote in favour, even if a higher bid emerges.

G&H, which serves aerospace & defence, industrial and life sciences markets with advanced optical components, has seen its order book grow 16.5% to £167.3 million, with H1 revenue up 15.5% to £81.9 million. However, the board cited risks including supply-chain constraints, germanium price inflation, and the challenges of competing for talent and capital as a smaller AIM-listed company.

Chairman Gary Bullard said the offer delivers “immediate and certain value” despite confidence in the standalone strategy. ACP’s Peter Manos said the firm was “excited to partner” with management to meet growing customer demand.

The deal, structured as a scheme of arrangement, requires shareholder and regulatory approval, including UK national security and US antitrust clearance, and is expected to be completed in Q4 2026.