L-3 Communications has entered into an agreement to acquire the assets of Thales Training & Simulation Ltd’s civil aircraft simulation and training business. The purchase price is £83m (approximately $132m) and will be funded with cash on hand. Headquartered in Crawley, United Kingdom, the business employs approximately 400 people. It is a leading manufacturer of commercial flight simulation equipment, with an installed base of more than 540 simulators and a significant global customer roster. The business also operates a training center in Asia. Its advanced civil aircraft simulators are compliant with U.S. Federal Aviation Administration, European Aviation Safety Agency and International Civil Aviation Organization regulations.
The acquisition is anticipated to be completed in the summer of 2012, subject to customary closing conditions and regulatory approvals, and will be substantially structured as an asset purchase for income tax purposes. For the 12 months ending December 31, 2012, the new civil aircraft training and simulation business is expected to generate sales of approximately $150m. The acquisition is expected to be immediately accretive to L-3’s results of operations.