CAE to sell Marine Controls unit to L-3 Communications for C$328 million
CAE Inc. signed an agreement on November 1, 2004 to sell its Marine Controls unit to L-3 Communications Corporation for approximately C$328 million, including C$276 million in cash. CAE expects an after-tax capital gain of about C$125 million at closing and plans to use proceeds mainly to reduce long-term debt, though the deal is initially expected to dilute earnings.
- Price: approximately C$328 million, including C$276 million (US$225 million) in cash and assumption of C$52 million of project finance debt
- Marine Controls fiscal 2004 revenue was C$158.6 million, about 15% of CAE's total revenue
- Expected after-tax capital gain of approximately C$125 million at closing; closing expected before March 31, 2005
- Deal is subject to regulatory approvals and other closing conditions