L3harris Technologies Inc logo

LHX - L3harris Technologies Inc News Story

$210.76 1.8  0.8%

Last Trade - 15/04/21

Sector
Industrials
Size
Large Cap
Market Cap £31.83bn
Enterprise Value £36.01bn
Revenue £13.20bn
Position in Universe 291st / 6851

UPDATE 2-CAE bolsters defense business with $1.05 bln deal for L3Harris unit

Mon 1st March, 2021 12:47pm
(Changes sourcing, adds details on the deal)
    Feb 28 (Reuters) - Canada's CAE Inc  CAE.TO  will buy
L3Harris Technologies Inc's  LHX.N  military training division
for $1.05 billion to boost its defense business at a time of low
demand for flight simulators from airlines in a
pandemic-battered industry.
    The deal, announced on Monday, broadens the company's
position in simulation and is expected to augment the
development of training systems for fighter and bomber aircraft,
submarines and remotely piloted aircraft. 
    "It (the deal) accelerates our growth strategy in Defence
and Security and is highly complementary to our core military
training business," CAE Chief Executive Officer Marc Parent said
in a statement.    
    The world's largest civil aviation training company expects
the deal to add to earnings in the first full year after closing
and projected annual cost savings of about C$35 million ($27.57
million) to C$45 million after the second year.  urn:newsml:reuters.com:*:nL4N2KI2DQ
    CAE, which produces flight simulators for Boeing Co  BA.N 
and Airbus  AIR.PA , posted a 50% slump in third-quarter profit
but expects to see an uptick in training contracts as more
people resume air travel following vaccinations.  urn:newsml:reuters.com:*:nL4N2KI2DQ
    The deal will be funded by a private placement of roughly
C$700 million from two institutional investors, CAE said.
 urn:newsml:reuters.com:*:nPn4q5FWXa
    Canada's second-largest pension fund Caisse de dépôt et
placement du Québec (CDPQ) said it would invest C$475 million in
the deal, becoming CAE's largest shareholder.  urn:newsml:reuters.com:*:nPn9hGLxha
    Post deal, which is expected to close in the second half of
2021, the training division will be based in Tampa, Florida.
   The deal was earlier reported by the Wall Street Journal.
    
($1 = 1.2696 Canadian dollars)

 (Reporting by Juby Babu and Shreyasee Raj in Bengaluru; Editing
by Peter Cooney and Sriraj Kalluvila)
 ((Juby.Babu@thomsonreuters.com; outside U.S. +91 80 6182
3397;))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.