BAE Systems North America has reached a definitive agreement to acquire Boeing’s Commercial Electronics unit, a developer and producer of avionics products and systems for commercial aircraft. Terms of the agreement have not been disclosed.
The sale, which is expected to close during the third quarter, includes all of the unit’s operations and the service centre at Boeing’s Irving, Texas facility. The sale also includes service centres in London and Singapore; and certain portions of the unit’s operations in Puget Sound. Approximately 800 people work for the unit, most of them in Irving.
The Commercial Electronics business, which had 2003 sales of about $170 million and net assets of about $15 million, will become part of BAE Systems’ Platform Solutions Sector, which provides products for commercial and military aircraft.
“Boeing Commercial Electronics is a widely respected and highly capable organisation, and we are delighted that it will become part of BAE Systems,” said James Scanlon, Platform Solutions Sector president.
“Commercial Electronics’ strengths are highly complementary with our existing commercial business, and this acquisition will greatly enhance our partnership with Boeing Commercial Airplanes,” added Scanlon.