Meggitt agrees to buy U.S. aerospace unit for $340 mln

(Corrects to make clear that Meggitt (Other OTC: MEGGF - news) is buying a division of EDAC)

LONDON, Sept 22 (Reuters) - British engineering firm Meggitt said it agreed to buy a division of U.S (Other OTC: UBGXF - news) .-based aerospace components company EDAC for $340 million, building on another acquisition it made last month to create a scale player in the sector.

Meggitt, which will suspend an ongoing buyback programme for the rest of this year to maintain financial flexibility, is to acquire the composites unit of EDAC in a cash deal, from a group of sellers led by Greenbriar Equity Group.

The deal helps cement Meggitt's position supplying advanced composites for jet engines and airframes, following its acquisition of Cobham (Other OTC: CBHMF - news) 's unit in August in a $200 million deal.

"This decisively moves our composites strategy forward, and positions us strongly in this key growth area," Meggitt's Chief Executive Stephen Young said in a statement.

Meggitt said it would also finance the deal through increasing previously announced debt facilities. (Reporting by Sarah Young; editing by Kate Holton and David Evans)