Boosting its commercial and international business in one swoop, L-3 Communications [LLL] on May 28 said it has acquired CTC Aviation Group, a Britain-based company that provides airline pilot training and crew resourcing to customers globally.
L-3 said it closed the $220 million cash acquisition on May 27, adding that the deal is expected to be immediately accretive to its operating results.
L3 CTS is expected to have sales this year of $86 million, with $50 million going to L-3’s top line in 2015, and in 2016 $95 million.
“This acquisition is a very good fit with our strategy of expanding our international and commercial presence by focusing on higher margin businesses with number one or two positions in the markets we serve,” Michael Strianese, L-3’s chairman, president and CEO, said in a statement. “L-3 CTC has a worldwide reputation for excellence and strengthens our Link Simulation & Training and Link UK businesses with value-added synergies for total training solutions across a wide range of military and commercial platforms. This addition will solidify L-3’s position as a global leader in commercial flight simulation and training.”
L-3 said that L3 CTC will become part of the Precision Engagement & Training Sector within the Electronic Systems segment and generate operating margins above the segment’s average. L3 CTC has 265 employees.