Raytheon [RTN] on Friday said it and France’s Thales agreed to immediately modify the structure of their ThalesRaytheonSystems (TRS) joint venture, a move that will result in a $150 million tax free gain for Raytheon in its second quarter financial results.
Raytheon also said that the transaction includes a $90 million cash payment to Thales.
The joint venture has been restructured to focus on NATO agencies and NATO member countries for the delivery of Air Command and Control Systems (ACCS), Theater Missile Defense, and Ballistic Missile Defense.
Raytheon said that going forward the ground-based radars and non-ACCS-related air command and control systems within the joint venture portfolio will transition to their parent companies.
The company also said that the former TRS LLC US operation is now a wholly-owned subsidiary of Raytheon Command and Control Solutions and that the former TRS SAS French operation is now a wholly-owned subsidiary of Thales.