NEW YORK, Oct. 15 -- L-3 Communications announced today it will acquire Northrop Grumman's Canadian navigation systems and space sensors system division business for approximately $65 million in cash. The acquisition is subject to regulatory approval and is expected to be completed by the end of 2004.
With facilities in Toronto and Halifax, the business to be acquired develops electronic products and systems for aviation and ground vehicles, primarily in Canada and the US. It specializes in aircraft navigation systems and products, military grade displays, vehicle electronics and systems support services for a variety of defense electronics and weapons programs. Its client base includes the Canadian Armed Forces, commercial airlines and military and scientific agencies.
L-3 said the acquisition is expected to contribute approximately $80 million to its sales in 2005 and to be slightly accretive to its earnings.
"The business to be acquired has a large installed base and a solid position in Canada," said Frank C. Lanza, chairman and CEO of L-3 Communications. "That base should continue to deliver growth into the future. The company also participates in key military asset programs, including the F/A-18 Canadian/Australian aircraft and the CP-140 Maritime Helicopter Program, and is well positioned for systems support programs."
Lanza said, "The acquisition provides us with additional capabilities to our existing cockpit display and control products that will enhance our position in both Canada and globally. In addition, there are significant synergies with L-3's Canadian operations and maintenance (O&M) operations, which include Spar Aerospace, MAS and Wescam, expanding existing products and value-added services to such additional platforms as the F/A-18 Canadian/Australian aircraft and the CP-140 Maritime Helicopter Program, as well as the Apache helicopter, C-17, F-16 and F-2."
He said the business to be acquired has made significant progress in developing the electronically controlled active suspension system (ECASS), which improves the maneuvering and cross-country performance of wheeled and tracked vehicles. ECASS could have a role in US combat vehicles as the Army continues its work on the Future Combat System.
For more information, visit: www.l-3com.com