Mergers & AcquisitionsBy The Online Investor Staff, updated Wed., Mar. 3, 10:37 PM
|This Slide: #38 of 100|
Slide #38. CAE — L3Harris' Military Training business
L3Harris' Military Training business
CAE today announced that it has entered into a definitive agreement with L3Harris Technologies (NYSE: LHX) to acquire L3Harris' Military Training business for US$1.05 billion, subject to customary adjustments (the "Acquisition"). The Acquisition value represents approximately 13.5 times the L3Harris Military Training business estimated adjusted 2020 EBITDA(1) or approximately 10 times, including cost synergies, which are expected to reach a range of C$35 to C$45 million (approximately US$28 to US$35 million) annually by the end of the second year following closing of the Acquisition. The Acquisition is expected to be low-teens percentage EPS accretive to CAE in the first full year post closing, including expected cost synergies. The closing of the Acquisition is expected in the second half of calendar year 2021, subject to regulatory approvals and other customary closing conditions.
CAE provides training for the civil aviation, defense and security, and healthcare markets. Co.'s segments are: Civil Aviation Training Solutions, which provides training solutions for flight, cabin, maintenance and ground personnel in commercial, business and helicopter aviation, various flight simulation training devices, and ab initio pilot training and crew sourcing services; Defense and Security, which provides training and mission support solutions for defense forces across the air, land and naval domains, and for government organizations responsible for public safety; and Healthcare, which provides education and training solutions to healthcare students and clinical professionals.
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Buy (2.60 out of 4)