CAE completes deal for L3Harris Technologies S&T businesses shephardmedia.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from shephardmedia.com Daily Mail and Mail on Sunday newspapers.
Broadens CAE s position in training and simulation across multi-domain operations
Low-teens percentage EPS accretion expected within first full year post closing, including expected cost synergies
Expected to be immediately accretive to Defence & Security operating profit and EBITDA
(1) margins on operational efficiencies
Funding structure consistent with CAE s investment grade profile
Transaction builds on CAE s track record of successful acquisitions
MONTREAL, March 1, 2021 /PRNewswire/ -
(NYSE: CAE) (TSX: CAE) – CAE today announced that it has entered into a definitive agreement with L3Harris Technologies (NYSE: LHX) to acquire L3Harris Military Training business for US$1.05 billion, subject to customary adjustments (the
Acquisition ). The Acquisition value represents approximately 13.5 times the L3Harris Military Training business estimated adjusted 2020 EBITDA
CAE to acquire L3Harris Technologies military training business for $1 05 billion verticalmag.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from verticalmag.com Daily Mail and Mail on Sunday newspapers.
By
Theresa Hitchens on March 01, 2021 at 1:37 PM
Raytheon’s T-6 trainer is used by the Air Force and Navy for basic pilot training.
WASHINGTON: CAE’s acquisition of L3Harris’s Military Training unit continues the Canadian firm’s efforts to expand and broaden its US defense portfolio, especially with the Air Force, say company officials and industry analysts.
“CAE will be a very good parent, hungry to grow its USAF training portfolio, plus become a larger DoD contractor,” one US market analyst said in an email.
“The proposed acquisition represents a significant value creation opportunity for all CAE stakeholders. It accelerates our growth strategy in Defence and Security and is highly complementary to our core military training business, broadening our position in the United States,” said Marc Parent, CAE’s president and CEO in a statement this morning announcing the buy.
CAE to Acquire L3Harris Technologies Military Training Business for $1B Our Bureau 1811
CAE today announced it will acquire L3Harris Technologies Military Training business for $1.05 billion.
The Acquisition value represents approximately 13.5 times the L3Harris Military Training business estimated adjusted 2020 EBITDA(1) or approximately 10 times, including cost synergies, which are expected to reach a range of C$35 to C$45 million (approximately $28 to $35 million) annually by the end of the second year following closing of the Acquisition.
The Acquisition is expected to be low-teens percentage EPS accretive to CAE in the first full year post closing, including expected cost synergies. The closing of the Acquisition is expected in the second half of calendar year 2021, subject to regulatory approvals and other customary closing conditions.