Stewart Penney/BORDEAUX
French avionics manufacturer Sextant is keen to buy a US-based avionics company as part of a three-pronged strategy to increase its military business. The plan could see it bidding against the UK's Smith Industries, which is also on the acquisition trail.
Sextant military aircraft avionics president Jean-Loïc Galle says the company aims to increase participation in new European programmes and become "multi- domiciled" by creating companies and joint ventures across the continent. Sextant then wants to boost its retrofit work, building on skills acquired on projects such as Spanish air force Dassault Mirage F1 upgrades. Thirdly, it aims to acquire a US company, "possibly in the next six months".
Galle says there are two ways to penetrate the US market: either as a niche player, but with consequent low returns, or through the acquisition of a major US manufacturer. "We're actively looking for a US company," he says, adding that businesses such as Kaiser and the avionics capability of Litton are of the size Sextant is seeking.
Galle says Lockheed Martin Systems, with which Sextant has a partnership, is to be divested by its parent, although Sextant has not yet decided to bid. Other likely targets are Honeywell's traffic alert and collision avoidance system (TCAS) and AlliedSignal's weather radar business.
Smiths Industries is also interested in elements of the Lockheed Martin restructuring sale. The company confirms that it too is looking at possibilities presented by the AlliedSignal/Honeywell deal. Close sources add that a proposed move by Sextant parent, Thomson-CSF for the UK's Racal Electronics might also throw up opportunities.
While defence products generated 32% of Sextant's c620.6 million ($675 million) revenues in 1998, the sector accounted for around two-thirds of sales in Smiths' aerospace division.
Source: Flight International
