Home / M&A Activity / Raytheon, Thales Restructure JV to Focus on NATO C2, Missile Defense Systems

Raytheon, Thales Restructure JV to Focus on NATO C2, Missile Defense Systems

ThalesRaytheon SystemsRaytheon (NYSE: RTN) and Thales Group have agreed to restructure their joint venture ThalesRaytheonSystems in order to focus on the delivery of ballistic and theater missile defense platforms as well as aerial command-and-control systems to NATO member countries and related agencies.

Thales received approximately $90 million in cash payment from Raytheon as part of their JV restructuring deal, Raytheon said Friday.

ThalesRaytheonSystems’ U.S. operations – TRS LLC – will now serve as a wholly owned subsidiary of Raytheon’s command and control solutions business and the JV’s France-based operations – TRS SAS – will now become a Thales subsidiary under the new structure.

The JV’s portfolio of aerial C2 platforms and ground-based radar systems will also transition to its parent companies.

Raytheon will record approximately $150 million in tax free gain for the second quarter of 2016 as a result of the transaction.

Check Also

David Johnson Named Honeywell Federal Solutions VP

David “DJ” Johnson, an 11-year Honeywell (NYSE: HON) veteran, has been named vice president of …

SAIC Books $255M US Space Systems Engineering Contract; Mark Escobar Quoted

Science Applications International Corp. (NYSE: SAIC) has secured a potential $255 million contract from an …