L-3 Communications (NYSE: LLL) has entered an agreement to buy a unit of Danaher Corp. that manufactures specialized equipment for electronic and optical systems, L-3 announced Tuesday.
L-3 said it expects the $210 million cash deal to close in the first quarter of its 2012 fiscal year and immediately increase operational results.
L-3 will add the Kollmorgen Electro-Optical unit to L-3’s integrated sensor systems organization. KEO employs approximately 550 workers and has its headquarters Northampton, Mass.
KEO develops and manufactures equipment including submarine photonics systems and periscopes, visual landing aids, ship fire control systems, ground electro-optical and sensor-cueing systems for the U.S. military, contractors and allied nations.
L-3 said it expects KEO to generate between $160 million and $170 million in sales and between $26 million and $30 million in earnings before interest, tax, depreciation and amortization for the year ending Dec. 31, 2012.
“KEO expands and broadens our base in the EO/IR(electro-optical/infrared) market, a key strategic growth area for L-3, and strengthens our position as a mission-critical sensor systems provider, ” said Wes Motooka, president of L-3’s integrated sensor systems sector.
