Wärtsilä acquires L-3 Marine Systems International

L-3 MSI is a business sector within L-3’s electronic systems business segment primarily focused on the commercial ship industry. The transaction is valued at EUR 285 million (enterprise value), subject to customary adjustments including an estimated reduction of EUR 60 million for L-3 MSI employee pension-related liabilities to be assumed by Wärtsilä Corporation. Financing for the deal will be from existing cash resources and credit facilities. The acquisition is subject to clearance from the regulatory authorities. It is expected to be closed during the second quarter of 2015.
Wärtsilä expects the new unit to be able to capture new market opportunities and improve operational efficiency for its customers, thereby increasing both the sales and profitability of the business.
When announcing the acquisition agreement, Jaakko Eskola, senior executive vice president and president of Ship Power at Wärtsilä Corporation 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. This enables us to have a dedicated focus on both markets with an industry leading portfolio that features solutions from both companies.”