The acquisition is subject to regulatory approval and is expected to be completed by December 31, 2004. The business is expected to contribute approximately U.S. $110 million to L-3's sales in 2005 and be accretive to L-3's earnings.
Headquartered in Montreal, Canada, and with business operations in Canada, the United States, the United Kingdom (UK), Norway, Italy, India and Malaysia, Marine Controls is a leading global supplier of integrated marine control systems and products for warships, submarines and high-end ocean-going commercial vessels worldwide.
Marine Controls has been a pioneer in the integration of military shipboard control systems and its systems are installed on approximately 600 active ships for eighteen navies around the world. Marine Controls' systems are also installed in over 450 commercial vessels, including the new Queen Mary 2 luxury liner, and the company has also established itself as a leader in power plant simulators to the energy sector.
"Marine Controls is a well-respected business in the defense industry," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "It has a solid and growing installed base, a strong market capture rate and it is resident on a number of excellent programs."
Mr. Lanza noted that Marine Controls is the Controls & Instrumentation Integrator for BAE Systems for the Astute Class Submarines for the UK Royal Navy, and co-prime for a thirty-year training service contract with the UK Ministry of Defense (MoD) for the Astute Class Submarine (FAST Consortium).
"Marine Controls also brings key products to L-3's existing businesses," continued Mr. Lanza.
"The company is well positioned for new platforms and life-cycle upgrades worldwide, and when combined with L-3's existing products, we could play a larger role as a subsystems supplier to navies globally." Mr. Lanza also noted that there are synergies with L-3's training systems and with its automation systems, naval power and bridge control systems.