Wärtsilä Corporation is set to acquire US-based L-3 Marine Systems International (L-3 MSI), a segment of L-3 Communications that is primarily focused on the commercial ship industry.
Valued at €285m, this transaction is subject to customary adjustments, including an estimated reduction of €60m for L-3 MSI employee pension-related liabilities to be assumed by Wärtsilä.
The acquisition will be funded using existing cash resources and credit facilities, and the process is expected to be closed during the second quarter of 2015.
Wärtsilä Corporation Ship Power senior executive vice-president and president Jaakko Eskola said: "By combining forces with L-3 MSI, we create a powerful electrical and automation business, which is unique in its sector competence and breadth of capabilities.
"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."
L-3 MSI provides automation, navigation and electrical systems, along with dynamic positioning technology and sonar and underwater communications technology for the marine, naval and offshore markets.
The company also manages brands including SAM Electronics, L-3 Valmarine, Lyngsø Marine, L-3 Dynamic Positioning & Control Systems, Jovyatlas Euroatlas, L-3 Elac Nautik, Funa and APSS.
Recently, L-3 SAM Electronics installed its voyage data recorder (VDR 4350) system on Carnival Cruise Lines’ fleet of 24 ships.