Britain’s BAE Systems plc on Tuesday said it has completed the sale of its 75 percent stake in a land systems business based in South Africa to Denel SOC Limited for $55.2 million.
The deal to sell its holding in BAE Systems Land Systems South Africa (LSSA) was first announced last August and also included the divesture by DGD Technologies Proprietary Limited of its 25 percent stake in LSSA. Denel is a South African-based defense company.
Erwin Bieber, president of the Platform and Services sector of BAE’s United States-based BAE Systems, Inc., subsidiary, said in a statement that the “divestiture will further focus our portfolio on our core capabilities and strong franchise positions in tracked, combat and amphibious vehicles, weapon systems, ship repair and munitions.” He also said that “LSSA will benefit from Denel SOC Limited’s complementary product lines and its close association with the South African government.”
The LSSA business has about 500 employees and specializes in the design and manufacture of military tactical-wheeled vehicles, mechanical driveline products, precision-machined components and gears, fire directing systems, and remote weapon launching platforms, subsystems and products.
As part of its portfolio shaping initiatives, BAE this month also said it is exploring the potential sale of its U.S. government services businesses.