Nov 22 U.S. defense contractor L-3
Communications Holdings Inc said it had acquired
UK-based MacDonald Humfrey Automation Ltd for 224 million pounds
($278 million) to strengthen its position in the aviation
MacDonald Humfrey makes automated tray handling systems and
airport checkpoint security systems that integrate inputs from
CCTV cameras on a single platform.
L-3 makes airport security products, explosives detection
systems and whole body imaging systems, among other devices such
as military and commercial aircraft flight simulators and global
positioning system receivers.
The deal, which comes after the UK's decision to leave the
European Union, will generate sales of about $135 million in
2017, L-3 said.
MacDonald Humfrey, which has 350 employees, will operate
under L-3's electronic systems business that accounted for about
41 percent of L-3's total revenue of $10.47 billion in 2015.
The purchase price is subject to an upward adjustment of up
to 30 million pounds, based on MacDonald Humfrey's
post-acquisition performance for the next three years, L-3 said.
($1 = 0.80 pounds)
(Reporting by Ankit Ajmera in Bengaluru; Editing by Maju