Raytheon (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.