Raytheon finalises $1.13 billion sale

Raytheon has finalised the sale of Aircraft Integration Systems (AIS), its aircraft modification and integration business to L-3 Communications for $1.13 billion in cash.

Under terms of the sale, Raytheon will continue as the prime contractor on the $1.4 billion UK Ministry of Defence ASTOR (Airborne Standoff Radar) program. Raytheon will also retain certain receivables and the Boeing Business Jet program, which is said to be nearing completion.

Raytheon expects the sale of AIS to be moderately dilutive to earnings in 2002. The after-tax proceeds from the sale will be used for debt reduction and general corporate purposes.

In 2001, AIS reported revenues of approximately $1.0 billion and a funded backlog of approximately $1.0 billion. The transaction is expected to increase L-3’s 2002 diluted earnings per share by $0.20.

Effective immediately, AIS has been renamed L-3 Communications Integrated Systems (IS).