L-3 to Acquire Northrop Grumman's Electro-Optical Systems Business
NEW YORK--(BUSINESS WIRE)--March 12, 2008--L-3 Communications (NYSE: LLL) announced today that it has entered into an agreement to acquire Northrop Grumman's Electro-Optical Systems (EOS) business for $175 million in cash. EOS is a leader in night vision technology and electro-optical products for military, commercial and public safety customers. The EOS business generated approximately $190 million of sales for the year ended Dec. 31, 2007, and is expected to be immediately accretive to L-3's earnings. The acquisition should be completed in the second quarter of 2008, subject to standard regulatory approvals.
"Our strategy is to acquire businesses that expand our core offerings," said James W. Dunn, president of L-3's Sensors and Simulation Group. "There is strong demand worldwide for image-enhancing products, and the addition of EOS' products and technologies enhances our ability to meet that need. Including EOS, L-3's EO/IR businesses will generate approximately $800 million in annual sales, with growth exceeding 10 percent."
L-3 currently offers fully integrated imaging solutions, including EO/IR (electro-optical/infrared) sensors, high-definition turrets, tactical sights and laser designators for air, land and sea applications. EOS' portfolio includes night vision goggles, weapons sights, driver viewers, image intensification tubes and applied optics products. The business will be integrated into L-3's Specialized Products segment within the Sensors and Simulation Group.
Headquartered in New York City, L-3 Communications employs over 64,000 people worldwide and is a prime contractor in aircraft modernization and maintenance, C3ISR (Command, Control, Communications, Intelligence, Surveillance and Reconnaissance) systems and government services. L-3 is also a leading provider of high technology products, subsystems and systems. The company reported 2007 sales of $14 billion.
To learn more about L-3, please visit the company's web site at www.L-3Com.com.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "will," "could" and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company's Safe Harbor Compliance Statement for Forward-looking Statements included in the company's recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.
CONTACT: L-3 Communications Corporate Communications 212-697-1111 SOURCE: L-3 Communications