L-3 acquires CTC Aviation Group for £143m

L-3 Communications acquired UK-headquartered CTC Aviation Group, now known as L-3 CTC. The purchase price is £143m (approximately US$220m)and was funded with cash on hand. The acquisition is expectedto be immediately accretive to L-3’s results of operations. L-3 CTC is a high-quality, global airline pilot training and crew resourcing specialist that offers customized and innovative solutions to major airlines and retail customers globally. This acquisition expands L-3’s Commercial Aviation Training business, which also includes L-3 Link UK, a provider of world-class flight training simulation devices, aftermarket solutions and training, to encompass a growing portfolio of airline and third-party training company customers. L-3 CTC has approximately 265 employees. L-3 CTC forecasts sales for the years ending December 31st, 2015 and 2016, of US$86m and US$95m, respectively, and is expected to add approximately US$50m to L-3’s sales for the year ending December 31st, 2015. L-3 CTC is a high-margin business that is expected to generate operating margins that generally exceed those of the Electronic Systems segment as a whole.