Wärtsilä completes acquisition of L-3 Marine Systems
Finland's Wärtsilä Corporation has completed the acquisition of Germany-based L-3 Marine Systems International (MSI), a segment of L-3 Communications that is primarily focused on the commercial ship industry.
Finland’s Wärtsilä Corporation has completed the acquisition of Germany-based L-3 Marine Systems International (MSI), a segment of L-3 Communications that is primarily focused on the commercial ship industry.
The company had announced this purchase in December last year and is currently valued at €285m. The deal includes an estimated reduction of €60m for L-3 MSI employee pension-related liabilities to be assumed by Wärtsilä.
L-3 MSI provides automation, navigation and electrical systems, as well as dynamic positioning technology, and sonar and underwater communications technology for the marine, naval and offshore markets.
"Our growth strategy [is] to become the leading provider of innovative products and integrated solutions in the marine and oil and gas industries."
This acquisition will help Wärtsilä strengthen its position as a developer of technologies that enhance the operational efficiency of vessels, the company stated.
L-3 chairman, president and CEO Michael T Strianese said: "We are pleased to have completed the divestiture of our MSI business, marking another milestone in our ongoing effort to reshape our portfolio and strengthen focus on our core businesses."
Wärtsilä Corporation Ship Power senior executive vice-president and president Jaakko Eskola earlier said: "The deal is fully in-line with our growth strategy to become the leading provider of innovative products and integrated solutions in the marine and oil and gas industries."
Brands under MSI are SAM Electronics, L-3 Valmarine, Lyngsø Marine, L-3 Dynamic Positioning and Control Systems, Jovyatlas Euroatlas, L-3 Elac Nautik, Funa and APSS.
I{n 2014, the company reported net sales of €404m and an operating profit of 7%.