L-3 Communications announced today that it has entered into an agreement to acquire the Marine Controls division of CAE for approximately $225 million in cash.
The acquisition is subject to regulatory approval and is expected to be completed by December 31, 2004. The business is expected to contribute approximately $110 million to L-3’s sales in 2005.
Headquartered in Montreal, Canada, and with business operations in North America, Europe and Asia, Marine Controls is a global supplier of integrated marine control systems and products for warships, submarines and high-end ocean-going commercial vessels worldwide.
L-3 says Marine Controls has been a pioneer in the integration of military shipboard control systems and that its systems are installed on approximately 600 active ships for 18 navies around the world. Marine Controls’ systems are also installed in over 450 commercial vessels.
“Marine Controls is a well-respected business in the defence industry,” said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. “It has a solid and growing installed base, a strong market capture rate and it is resident on a number of excellent programs.”
“Marine Controls also brings key products to L-3’s existing businesses,” continued Mr. Lanza. “When combined with L-3’s existing products, we could play a larger role as a subsystems supplier to navies globally.”