EADS Buys PlantCML
In late 2007, European aerospace and defence giant said that they were looking to make at least 2 acquisitions in the American market, as part of a larger strategic plan they called “Vision 2020.” Buying PlantCML of Temecula, CA from Golden Gate Capital, a San Francisco-based private equity fund, for approximately $350 million appears to be the first step.
EADS has created a strong position for itself in the market for “professional mobile radios,” and are responsible for building several national law enforcement and first responder networks using TETRA technology. PlantCML complements these strengths by offering solutions that take advantage of this base, and handle back-end call/command center activities like call management and radio dispatch, emergency notification services, Computer Aided Dispatch (CAD) applications, and mapping services. These services can add to EADS offerings in Europe and beyond, while giving the firm a foothold for its full range of solutions in North America. PlantCML has U.S. operations in California, Alabama, Indiana, and Tennessee, and a Canadian operation in Quebec, and EADS’ release reports that PlantCML’s existing margins and profitability are strong.
According to this Forbes article, EADS’ Vision 2020 aims to have 20% of the firm’s employees and 40% of its sourcing outside Europe by 2020, with defense and homeland security revenues rising in proportion to Airbus revenues, and service revenues rising from 10% to 25%.