L-3 Communications Acquires MacDonald Humfrey Automation
November 22 2016 - 6:00PM
Dow Jones News
Defense contractor L-3 Communications Holdings Inc. on Tuesday
said it acquired MacDonald Humfrey Automation Ltd. for about £ 224
million ($280 million), beefing up its position in the global
aviation-security market.
Luton, U.K.-based MacDonald Humfrey develops automated
airport-checkpoint security scanners, some of which American
Airlines Group Inc. and United Continental Holdings Inc. introduced
at Chicago's O'Hare International Airport this month. The scanners
are widely used in Europe and elsewhere.
MacDonald Humfrey, which has 350 employees, will report to the
security and detection systems division of the L-3's electronic
systems business segment and will operate under the L-3 MacDonald
Humfrey name. L-3 MacDonald Humfrey is projected to generate sales
of roughly £ 108 million ($135 million) in 2017.
The purchase price is subject to an upward adjustment of up to £
30 million (about $37.5 million) based on MacDonald Humfrey's
post-acquisition performance for the next three years.
New York-based L-3 employs about 38,000 people world-wide and
raked in $10.5 billion in sales for 2015.
L-3, which has focused on developing its ClearScan carry-on
baggage screening system and ProVision personnel screener, said the
acquisition will enhance its ability to deliver "scalable,
operationally based networked security systems."
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
November 22, 2016 17:45 ET (22:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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