Wärtsilä Swoops on L-3 MSI
- Business & Finance
Finnish Wärtsilä Corporation is to acquire L-3 Marine Systems International from L-3 Communications Holdings Inc., in a transaction valued at EUR 285 million (USD 358m).
The value of the deal is subject to customary adjustments including an estimated reduction of EUR 60 million (USD 75.3m) for L-3 MSI employee pension-related liabilities to be assumed by Wärtsilä Corporation.
Financing for the deal will be secured from Wärtsilä’s existing cash resources and credit facilities, and is expected to be closed during the second quarter of 2015.
L-3 MSI is expected to generate approximately EUR 400 million (USD 502m) of sales with an operating margin of approximately 6.5 % for the year ending December 31, 2014.
Headquartered in Hamburg, Germany, L-3 MSI currently has more than 1,700 employees in 38 locations in 14 countries. L-3 MSI delivers automation, navigation and electrical systems, as well as dynamic positioning technology, and sonar and underwater communications technology for the marine, naval and offshore markets.Its portfolio comprises various product brands, including SAM Electronics, L-3 Valmarine, Lyngsø Marine, L-3 Dynamic Positioning & Control Systems, Jovyatlas Euroatlas, L-3 Elac Nautik, Funa and APSS.
Jaakko Eskola, Senior Executive Vice President & President, Ship Power, Wärtsilä Corporation, said: “By combining forces with L-3 MSI, we create a powerful electrical and automation business, which is unique in its sector competence and breadth of capabilities. The deal is fully in line with our growth strategy to become the leading provider of innovative products and integrated solutions in the marine and oil & gas industries. This enables us to have a dedicated focus on both markets with an industry leading portfolio that features solutions from both companies.”