19 Dec 13. L-3 Communications (NYSE:LLL) has acquired Mustang Technology Group, L.P. The business, now named L-3 Mustang Technology, develops and manufactures radar-based sensors and systems used in precision-guided weapons, electronic warfare, unmanned systems and other military applications. Headquartered in Plano, Texas, L-3 Mustang employs approximately 115 people and its products are used by the U.S. military, government agencies and prime contractors. The business is expected to generate $36m in sales for the year ending December 31, 2013. (Source: Yahoo!/BUSINESS WIRE)
19 Dec 13. Despite warnings of catastrophic damage to the defense industry as a result of the sequester, 2013 turned into a fairly average year, the Aerospace Industries Association (AIA) reported Wednesday. In its annual year-end report AIA said that industry military aircraft sales dropped six percent, and missiles and space both dropped five percent. But despite those declines, an uptick of four percent on defense exports helped the industry and the Pentagon’s use of previously unobligated funds softened the blow. Net profit after taxes across the aerospace industry was up 17 percent to $23bn. Companies have also seen very strong profits during the past year, largely due to dramatic payroll cutting, which showed up in figures released by AIA. The aerospace industry as a whole employed 618,000 people in 2013 — down from 631,000 in 2012 — and is the lowest number the industry has seen since 2005. The association also projected a strong 2014, with increases in essentially every defense category and overall sales up 5.5 percent. On Tuesday the organization also announced that it had selected the leaders of its board for 2014. Michael Strianese, L-3 Communications CEO and 2013’s vice chair, will serve as chairman in 2014 with David Joyce, CEO of GE Aviation, filling in as the new vice chair. Strianese succeeds Wes Bush, Northrop Grumman CEO, who served as chair in 2013. (Source: Defense News)
20 Dec 13. Madison Dearborn Partners and CoVant have agreed to buy LGS Innovations LLC, a leading provider of groundbreaking research and advanced networking and communications solutions to the U.S. federal government, from Alcatel-Lucent. Closure of the transaction is anticipated to take place in the first quarter of 2014, following the completion of regulatory approvals and consultations with the U.S. Government. “This transaction will better enable us to serve our customers in the civilian, defense, and advanced programs communities by doing what we do best – researching, developing, and deploying secure networking and communications solutions.” LGS Innovations was formed during the Alcatel and Lucent merger in 2006 as an independent subsidiary and sole channel to the U.S. Federal Government in response to Committee on Foreign Investment in the United States (CFIUS) requirements. With a heritage extending back over 60 years, LGS Innovations supports its customers with secure communications and networking solutions as well as advanced research and development in photonics, remote sensing, microtechnology and cybersecurity. (Source: Yahoo!/BUSINESS WIRE)
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