CAE (NYSE: CAE) has agreed to sell its health care business unit to Chicago-based Madison Industries for approximately $226.3 million as the Canadian aerospace and defense company seeks to focus on its core training and simulation markets.
Both companies expect to close the transaction before the end of fiscal year 2024, subject to closing conditions and customary regulatory approvals, CAE said Tuesday.
“This decision to streamline our portfolio better positions CAE to efficiently allocate capital and resources to secure the many attractive growth opportunities on the horizon in our much larger, core simulation and training markets,” said Marc Parent, president and CEO of CAE.
Larry Gies, founder and CEO of Madison Industries, said the company will expand upon CAE Healthcare’s foundation to deliver a comprehensive set of clinical training tools.
National Bank Financial acted as exclusive financial adviser to CAE on the transaction.