Wartsila to Buy L-3’s Marine Systems Int’l Business for $357M; MIchael Strianese Comments

Michael Strianese
Michael Strianese

L-3 Communications (NYSE: LLL) has agreed to sell its Marine Systems International business to Wartsila Corp. for $357 million in a move that L-3 CEO Michael Strianese says is part of the company’s plan to reshape its portfolio.

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The companies expect to complete the transaction in the second quarter of 2015 and Wartsila will assume $75 million in pension-related liabilities as part of the deal, L-3 said Thursday.

Strianese said L-3 aims to “open up new opportunities… to further enhance our operations and focus on delivering innovative solutions in our core markets.”

Hamburg, Germany-based Marine Systems International business builds electrical systems and integrated navigation, automation, communications and propulsion systems for commercial ship industry clients.

L-3 expects MSI to generate nearly $501 million in sales and an operating margin of approximately 6.5 percent for calendar year.

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