L-3 Signs Definitive Agreement to Sell Its Marine Systems International Business
NEW YORK, December 16, 2014 – L-3 Communications (NYSE:LLL) announced today that it has entered into a definitive agreement with Wärtsilä Corporation to sell its Marine Systems International (L-3 MSI) business. The transaction is anticipated to be completed in the second quarter of 2015, subject to customary closing conditions and regulatory approvals. The transaction, with a base purchase price of €285 million, is subject to customary adjustments and an estimated reduction of €60 million for L-3 MSI employee pension-related liabilities to be assumed by Wärtsilä Corporation.
Headquartered in Hamburg, Germany, L-3 MSI is a sector within L-3’s Electronic Systems business segment, primarily focused on the commercial ship industry. L-3 MSI is a turnkey supplier of complete electrical systems, as well as integrated navigation, automation, communications, and power and propulsion systems for all types of ships, including cruise liners, ferries, and offshore and specialty vessels. L-3 MSI comprises various units, including SAM Electronics, Valmarine, Lyngsø Marine, Dynamic Positioning & Control Systems, JOVYATLAS/EUROATLAS, ELAC Nautik, FUNA and APSS. L-3 MSI is expected to generate sales of approximately €400 million with an operating margin of approximately 6.5% for the year ending December 31, 2014.
“This planned disposition of L-3 Marine Systems International to Wärtsilä Corporation demonstrates our ongoing focus on portfolio shaping as a key component of our strategy of bringing efficiencies and value to our core businesses,” said Michael T. Strianese, L-3’s chairman, president and chief executive officer. “As a turnkey supplier of a variety of sophisticated marine electrical and automation systems, with an outstanding workforce, MSI will complement and enhance Wärtsilä’s strengths in this sector. At the same time, this sale will open up new opportunities for L-3 to further enhance our operations and focus on delivering innovative solutions in our core markets.”
Headquartered in New York City, L-3 employs approximately 48,000 people worldwide and is a prime contractor in aerospace systems and national security solutions. L-3 is also a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms. The company reported 2013 (revised) sales of $12.6 billion.
To learn more about L-3, please visit the company’s website at www.L-3com.com. L-3 uses its website as a channel of distribution of material company information. Financial and other material information regarding L-3 is routinely posted on the company’s website and is readily accessible.
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Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “will,” “could” and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company’s Safe Harbor Compliance Statement for Forward-Looking Statements included in the company’s recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.
Source: L-3 Communications