BAE Systems to buy UDI
BAE Systems is to acquire United Defense Industries for $4 billion while US-based Rockwell Collins is to buy the German military aviation electronics outfit Teldix for at approximately $94 million.
BAE Systems’ wholly-owned US subsidiary, BAE Systems North America is proposing to acquire United Defense Industries for $4,192 million, while US-based Rockwell Collins is to buy the German avionics outfit Teldix from Northrop Grumman for $94 million.
If the BAE deal goes through, UDI, together with BAE Systems' existing UK and Swedish land systems businesses, will form part of a newly created global land systems business, which will be headquartered and led in the US, as part of BAE Systems North America.
UDI, headquartered in Arlington, VA, is a leading US defence company which generated annual sales in 2004 of $2,292 million. The company, which employs approximately 8,000 people in 25 locations in the US and Sweden, designs, develops and produces combat vehicles, artillery systems, naval guns, missile launchers and precision munitions and provides non-nuclear ship repair, modernisation and conversion to the US Navy and other US Government agencies.
The proposed BAE acquisition is conditional, amongst other things, upon receiving the required regulatory clearances, UDI shareholder approval and the approval of BAE Systems shareholders at an Extraordinary General Meeting and is expected to close by mid 2005.
While the UK military giant makes its moves in the US, the US outfit Rockwell Collins has decided to broaden its base in Europe with the purchase of the German military aviation electronics outfit Teldix for approximately $94 million.
Teldix supplies military aircraft computer products to major prime contractors throughout Europe and has a leading position in major European programs such as the Eurofighter Typhoon, the multi-role combat fighter Tornado, and the NH90 and Tiger helicopters.
The company, which was founded in 1960, employs more than 400 engineering, manufacturing and operation personnel. Its revenues were approximately $90 million for its fiscal year ended December 31, 2004.
Like the BAE acquisition, the Rockwell Collins deal is also subject to customary closing conditions, including regulatory approvals in Germany. The Rockwell deal is expected to close by the end of March 2005.