Wärtsilä Corp. announced that its acquisition of the Germany-based L-3 Marine Systems International (MSI) has been finalized and control of the company will be transferred to Wärtsilä effective 1 June 2015.
Wärtsilä will acquire MSI from L-3 Communications Holdings using financing from existing cash resources and credit facilities. The transaction is valued at about US$313 million (MEUR 285). After estimated adjustments of cash, working capital, and pension liabilities, the purchase price is estimated to be about $324 million (MEUR 295). The final purchase price will be determined based on closing accounts. The acquisition received Korean merger control clearance in March and EU clearance in April.
MSI has extensive experience in supplying automation, navigation and electrical systems, dynamic positioning technology, as well as sonar and underwater communications technology for a variety of vessel types and offshore installations. The MSI organization, which currently comprises more than 1700 employees working from 38 locations in 14 countries, will be integrated with Wärtsilä’s existing electrical and automation (E&A) business.
E&A systems are of increasing importance since the operation of ships is becoming ever more sophisticated. Wärtsilä's position in the development of technologies that enhance operational efficiency will be strengthened with the addition of MSI's broad range of capabilities. The company's portfolio comprises several well-known product brands, including SAM Electronics, Valmarine, Lyngsø Marine, Dynamic Positioning & Control Systems, Jovyatlas Euroatlas, ELAC Nautik, FUNA, GA International and APSS.
The acquisition is expected to be EPS accretive as of 2015. Further information on the financial impact will be provided once closing accounts have been finalized.
Image: Wärtsilä
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