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Diehl VA Systeme and Thomson-CSF Sextant intend to found a joint avionics company

20 June 2001

Diehl VA Systeme and Thomson-CSF Sextant intend to found a joint avionics equipment company named "Diehl Avionik Systeme GmbH" in which Diehl will hold a share of 51% and Thomson-CSF Sextant a share of 49%.

This new company will include all activities of BGT's "Control and Navigation Division" as well as VDO-Luftfahrtgerate Werk GmbH. The new company "Diehl Avionik Systeme GmbH" will have locations in Uberlingen and Frankfurt. The company will be registered in Uberlingen. "Diehl Avionik Systeme GmbH" will employ about 800 persons, achieving annual sales of approx. DM 220 million or 112 million Euro.

This new organization will become effective retroactively on January 1, 2000.

Through this merger, "Diehl Avionik Systeme GmbH" will be the largest avionics company in Germany. Its close relations with the global player Thomson-CSF Sextant is a major prerequisite for being able to play an important role in international business also in the future.

Since 1992, both companies, BGT and Thomson-CSF Sextant, have held an interest in the avionics equipment company VDO-Luftfahrtgerate Werk GmbH located in Frankfurt (annual sales: DM 120 million or 61 million Euro, 450 employees), with shares of 50,5% for BGT and 49,5% for Thomson-CSF Sextant.

Recently, the aviation industries in Europe and in the US have largely reoriented their strategies and thus also their structures to be able to respond to the considerable changes in the markets.

Against this background, the companies of Diehl VA Systeme, one of the four corporate divisions of the Diehl Corporation, and Thomson-CSF Sextant engaged in avionics equipment business have decided to reorganize their intensive cooperation that has already existed for many years. Thus, all necessary prerequisites are to be provided for playing an important and successful role in aviation equipment business also in the future.

BGT is a company of the Diehl Corporation which employs a total of 1,220 persons, achieving annual sales of DM 410 million DM ( 209 million Euro ) It is composed of the "Missiles" and "Control and Navigation" divisions. The "Control and Navigation Division" deals above all with the avionics fields of flight control and engine control.

Thomson-CSF Sextant, the European leader and world-renowned partner in avionics and in-flight entertainment, is a wholly-owned subsidiary of Thomson-CSF, a world leader in professional electronics for civil and defense markets. Thomson-CSF Sextant generated sales 1,6 billion DM or 860 million Euro in 1999 and has 5.650 employees.