Space communications systems developer L-3 Communications is to acquire the Kollmorgen Electro-Optical (KEO) unit of Danaher Corporation for approximately US$210m.
The acquisition, which is to be funded with cash on hand and will be structured as an…
Space communications systems developer L-3 Communications is to acquire the Kollmorgen Electro-Optical (KEO) unit of Danaher Corporation for approximately US$210m.
The acquisition, which is to be funded with cash on hand and will be structured as an asset purchase for income tax purposes, is anticipated to be completed in the first quarter of 2012. The purchase price presents an acquisition multiple of around 7.5 times estimated 2012 EBITDA.
“KEO’s unique and proprietary systems support high-priority DoD programs, expand our existing product portfolio and create a variety of technical synergies and product pull-through opportunities that are applicable across L-3,” said Michael Strianese, L-3’s chairman, president and chief executive officer. “Taken together, KEO adds important new capabilities and serves as an example of L-3 successfully executing its acquisition strategy.”
KEO develops and manufactures specialized equipment, including submarine photonics systems and periscopes, ground electro-optical and sensor-cueing systems. L-3 stated that on completion of the acquisition, KEO would become part of its Integrated Sensor Systems organisation.
For the year ending 31 December 2012, KEO is expected to generate sales in the range of approximately US$160m to US$170m, and estimated EBITDA in the range of US$26m to US$30m. Upon closing, the acquisition is expected to be immediately accretive to L-3’s results of operations.
