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NEW YORK, January 29, 2003. L-3 Communications has agreed to acquire Goodrich Avionics Systems for $188 million in cash. The transaction will be treated as an asset acquisition for tax purposes with the resulting tax benefit from that structure. The acquisition is subject to customary closing conditions, and is expected to close by March 2003. The company expects the acquisition to be accretive to L-3 Communications' 2003 results.
Headquartered in Grand Rapids, Michigan, Goodrich Avionics Systems is a brand name in the avionics marketplace. The business develops and produces avionics products and systems principally for the general aviation sector and markets them through a well-known and well-established dealer network and for military platforms, such as JPATS (Joint Primary Air Training System).
Goodrich Avionics Systems' wide variety of advanced aviation products are primarily focused on aircraft safety and situational awareness, and include collision avoidance systems, display systems, weather avoidance systems, terrain awareness and warning systems, navigation systems, power supply and conditioning systems, standby instruments, gyros and actuators. Goodrich Avionics Systems also has a world-class service, repair and overhaul operation.
"This avionics business is profitable, well managed and, just as importantly, opens up an entirely new market for our products--general aviation," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications. "We believe that there are many operating synergies that we can benefit from, including enhanced manufacturing, expanded marketing and distribution as well as increased efficiencies in our Research and Development initiatives."
"As a leader in general aviation products," continued Mr. Lanza, "this business has an extensive dealer network for us to sell our avionics portfolio, including advanced displays, aviation recorders, transponders, collision avoidance and proximity awareness products. Goodrich Avionics also gives us a unique set of products that we can add to our existing line for the commercial air transport, business jet and military aircraft markets."
"Despite the general weakness in the aviation industry, Goodrich Avionics has positioned itself to take a leadership position with its creation of SmartDeck, which is an affordable and revolutionary integrated avionics suite for the general aviation market. The need for increased safety in general aviation has prompted many aircraft manufacturers to look to advanced products such as situational awareness products used in commercial airlines. SmartDeck is a highly integrated cockpit that will enhance pilot training and provide, in real time, a clearer picture of the flight environment that will ultimately enhance pilot performance and safety in the general aviation market."
Headquartered in New York City, L-3 Communications is a leading merchant supplier of Intelligence, Surveillance and Reconnaissance (ISR) products, secure communications systems and products, avionics and ocean products, training products, microwave components and telemetry, instrumentation, space and wireless products. Its customers include the Department of Defense, selected U.S. government intelligence agencies, aerospace prime contractors and commercial telecommunications and wireless customers.
To learn more about L-3, visit www.l-3com.com .
Military & Aerospace Electronics
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