MONTREAL, 4 February 2005. CAE Inc. and L-3 Communications Corp. have concluded the major portion of the sale and purchase of CAE's Marine Controls unit, including full payment of C$245 (US$200) million in cash.
The remaining elements of the sale, including L-3's assumption of C$52 million of project finance debt, are expected to close in the coming months, upon receipt of final approvals. An agreement in principle for the sale and purchase of CAE's Marine Controls unit was previously announced on November 1, 2004.
Proceeds from the transaction will be used primarily for the reduction of the company's long-term debt. The transaction value is 11 percent lower than originally planned, and reflects a variance in the recent performance of Marine Controls. The transaction will result in a net after-tax gain of approximately C$110 million, which will be finalized and recorded in CAE's fourth quarter ended March 31, 2005.
"The sale of Marine Controls is an important step in allowing CAE to focus on its core business of developing simulation technology and training solutions for civil and defence customers," said Robert E. Brown, CAE's president and CEO. "I would like to thank the Marine Controls employees for their contribution, and wish them all the best in their future endeavours."
Headquartered in New York City, L-3 Communications is a leading provider of Intelligence, Surveillance and Reconnaissance (ISR) systems, secure communications systems, aircraft modernization, training and government services and is a merchant supplier of a broad array of high technology products. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies, and aerospace prime contractors.
CAE is a leading provider of simulation and modeling technologies as well as integrated training services for commercial and business aviation, and defense customers worldwide. The company has annual revenues of approximately C$1 billion, with operations and training facilities in 17 countries on five continents. For more information, see www.cae.com.