L-3 Completes Divestiture of Marine Systems International Business
By Business Wire News
By Business Wire News
L-3 Communications (NYSE:LLL) announced today the completion of the previously announced sale of its Marine Systems International (MSI) business to Wärtsilä Corporation for €295 million, after the assumption by Wärtsilä of approximately €60 million of MSI employee pension-related liabilitiesand customary adjustments for closing date working capital.
“We are pleased to have completed the divestiture of our MSI business, marking another milestone in our ongoing effort to reshape our portfolio and strengthen focus on our core businesses,” said Michael T. Strianese, L-3’s chairman, president and chief executive officer. “We continue to evaluate additional portfolio-shaping opportunities that strengthen our ability to deliver innovative solutions in our core markets, increase the company’s operating margin, and enhance our future growth profile, all with a focus on increasing value for our shareholders.”
Based on the terms of the sale and the previously disclosed forward contract to sell €285 million at a U.S. dollar exchange rate of approximately $1.08, proceeds from the MSI divestiture total approximately $318 million, before selling and other transaction expenses.
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 1995
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.