Canada's CAE is to sell its Marine Controls business to L-3 Communications for C$52 million ($42.6 million), to focus on civil and military simulation. The sale ends a series of divestments, begun in 1998, that has seen Montreal-based CAE sell off its aircraft maintenance and forestry systems businesses.
New chief executive Robert Brown says the sales "mark an important first step" in CAE's strategy by honing its focus on the development and use of simulation and modelling technology for training. The sale will improve CAE's balance sheet and provide greater flexibility, he says.
Marine Controls will be L-3's fourth Canadian acquisition since 2001, when it purchased military aircraft maintenance specialist Spar Aerospace. L-3 acquired sensor supplier Wescam in 2002 and last year it bought Bombardier's military aviation services unit. Last month, L-3 agreed to acquire Northrop Grumman's Canadian navigation systems business.
Lockheed Martin, meanwhile, aims to acquire Sippican Holdings, a supplier of naval electronic systems, from private-equity firm the Carlyle Group.
Source: Flight International
