L-3 Acquires CTC Aviation Group
May 28 2015 - 8:45AM
Business Wire
L-3 Communications (NYSE:LLL) announced today that on May 27,
2015 it acquired UK-headquartered CTC Aviation Group, now known as
L-3 CTC Ltd. The purchase price is £143 million (approximately $220
million) and was funded with cash on hand. The acquisition is
expected to be immediately accretive to L-3’s results of
operations.
L-3 CTC is a high-quality, global airline pilot training and
crew resourcing specialist that offers customized and innovative
solutions to major airlines and retail customers globally. This
acquisition expands L-3’s Commercial Aviation Training business,
which also includes L-3 Link UK, a provider of world-class flight
training simulation devices, aftermarket solutions and training, to
encompass a growing portfolio of airline and third-party training
company customers. L-3 CTC has approximately 265 employees. L-3 CTC
forecasts sales for the years ending December 31, 2015 and 2016, of
$86 million and $95 million, respectively, and is expected to add
approximately $50 million to L-3’s sales for the year ending
December 31, 2015. L-3 CTC is a high-margin business that is
expected to generate operating margins that generally exceed those
of the Electronic Systems segment as a whole.
“This acquisition is a very good fit with our strategy of
expanding our international and commercial presence by focusing on
higher-margin businesses with number one or two positions in the
markets we serve,” said Michael T. Strianese, L-3’s chairman,
president and chief executive officer. “L-3 CTC has a worldwide
reputation for excellence and strengthens our Link Simulation &
Training and Link UK businesses with value-added synergies for
total training solutions across a wide range of military and
commercial platforms. This addition will solidify L-3’s position as
a global leader in commercial flight simulation and training, while
delivering value to our customers and shareholders.”
L-3 CTC and L-3 Link UK will retain their individual brands and
strengths as independent operational entities, while continuing to
focus on and serve their existing customers and markets. The
synergistic collaboration of these two businesses enables new and
innovative approaches to vertically integrated training, resourcing
and simulation solutions. The business portfolio will span the
entire spectrum of customer needs, delivering unique and innovative
capabilities, an unmatched value proposition, and a strong emphasis
on customer service.
“Driven by a focus on the customer, quality, service and safety,
this new partnership of world-class training devices and training
delivery places L-3 Link UK and L-3 CTC in the unique position to
provide customers with totally scalable training solutions whatever
their requirements,” said Alan Crawford, managing director of L-3
Link UK. “This acquisition also enables L-3 to build on strategic
partnerships with key growth airlines in an environment where a
global shortage of pilot training resources and increased pilot
demand are driving the growing need for tailored pilot training
solutions. We look forward to working very closely with L-3 CTC to
bring to our customers the unique propositions that can only be
delivered by a customer-focused training and resourcing solutions
company.”
L-3 CTC will be integrated into the Precision Engagement &
Training sector, which is part of L-3’s Electronic Systems
segment.
Headquartered in New York City, L-3 employs approximately 45,000
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
2014 sales of $12.1 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.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995Except for historical information contained
herein, the matters set forth in this news release are
forward-looking statements. Statements that are predictive in
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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
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included in the company’s recent filings, including Forms 10-K and
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forward-looking statements speak only as of the date made, and the
company undertakes no obligation to update these forward-looking
statements.
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