BAE SYSTEMS agrees to sell Chaff and Flare Business to Esterline Technologies
15 Jul 2002
BAE Systems North America and Esterline Technologies today announced that they have reached a definitive agreement under which Esterline Technologies will acquire BAE Systems Electronic Warfare Passive Expendables Division, consisting of two business lines that produce expendable defensive countermeasures - chaff and flares. The businesses are located at Lillington, North Carolina, and East Camden, Arkansas.
At the Lillington facility, approximately 65 employees produce radar countermeasure chaff used by aircraft to help protect against radar-guided missiles. At East Camden, about 235 employees produce a variety of aircraft-dispensable flares designed to protect against infrared-guided missiles.
Closing of the sales agreement, negotiated at $67.5 million in cash, is expected to occur within 60 days.
Mark Ronald, BAE Systems Chief Operating Officer and President of BAE Systems North America, said the sale was undertaken because the focus and strategy of BAE Systems North America is moving increasingly from that of component provider - as represented by the chaff and flare lines -- to systems integration. "These have been valuable and profitable business lines for BAE Systems," Ronald said. "We believe they will be a superb fit with Esterline Technologies."
About BAE SYSTEMS:
BAE Systems is a systems company, innovating for a safer world. BAE Systems employs nearly 100,000 people including Joint Ventures, and has annual sales of around $18 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE Systems designs, manufactures and supports military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defense products. BAE Systems is dedicated to making the intelligent connections needed to deliver innovative solutions.
BAE Systems North America employs 22,000 people in the design, development, integration, manufacture and support of a wide range of advanced aerospace products and intelligent electronic systems for government and commercial customers.
Esterline Technologies (NYSE/ESL) is a leading specialty manufacturer for aerospace/defense and electronics markets. For more on the company, visit: www.esterline.com.
For further BAE Systems information please contact:
Randy Morger, BAE Systems Information and Electronic Systems Integration Sector,
Tel: +1 603 885 2817 Fax: +1 603 885 2813
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