Mid-tier defense conglomerate L-3 Communications has signed an agreement to acquire maritime electrical and electronics system supplier SAM Electronics GmbH (SAM) for U.S. $150 million in cash, subject to customary closing conditions and regulatory approvals. L-3 sees the sale as a fit with its existing power and controls business, and believes this will expand their opportunities in both new ship integration and power conversions as more ships migrate from mechanical systems to electric power. It also provides cross-geographic opportunities to SAM’s products in the USA, and some of L-3’s products in Germany and Asia – if the companies can execute.
The acquisition is expected to be completed in the first half of 2006 and to be slightly accretive to L-3’s earnings. SAM is expected to generate approximately $320 million of sales for the year ending December 31, 2006. No word yet on where SAM will fit into L-3’s revised corporate structure, though “Specialty Products” seems a good bet.
L-3 Communications Henshcel in Newburyport, MA received an estimated maximum $6 million indefinite-delivery/indefinite-quantity, firm-fixed-price contract for Submarine Valve Regulated, Lead Acid Automatic Battery Monitoring Systems (ABMS).
The US Navy is considering switching from flooded lead-acid battery designs to valve-regulated varieties for its Submarine Main Storage Battery requirements…
Rheinmetall Group subsidiary Rheinmetall Defence Electronics GmbH (RDE) of Bremen, Germany has been awarded a subcontract to supply the complete Loadmaster Control System for the new EADS Airbus A400M military transport aircraft throughout the entire period of production. Under the currently envisaged order volume of 180 planes, the value of the order comes to approximately EUR 72 million in 2005. RDE expects the total value of this project – which is set to run 20-25 years – to be in the region of EUR 200 million.
Modern transport aircraft require a cargo hold system that is easy to operate, and completely reliable both electrically and electronically.
Lockheed Martin Space Systems Co. in Sunnyvale, CA received a $21.5 million cost-plus award-fee contract modification. This procurement will incorporate new launch schedules for Defense Meteorological Satellite Program (DMSP) Satellites F-17 and F-19, and additional work for Satellite F-18.
The DMSP has been collecting weather data for U.S. military operations for almost 40 years, and 2 operational satellites are in a 101 minute, sun-synchronous near-polar orbit at all times. The primary weather sensor on DMSP is the Operational Linescan System, which provides continuous visual and infrared imagery of cloud cover over an area 1,600 nautical miles wide. Additional satellite sensors based on microwaves, infrared, sounders, et. al. measure atmospheric vertical profiles of moisture and temperature, detect developing patterns of weather and track existing weather systems over remote areas (incl. severe thunderstorms, hurricanes, and typhoons), and measure local charged particles and electromagnetic fields to assess the impact of the ionosphere on ballistic-missile early warning radar systems and long-range communications. Additionally, these data are used to monitor global auroral activity and to predict the effects of the space environment on satellite operations.
Lockheed Martin and Dutch company Stork Aerospace signed a contract extending the existing order for the design, prototype production, and development of the F-35 Joint Strike Fighter‘s wiring, including the mission systems. The contract extension includes extra design work and represents a value of USD $25 million, small earlier contract changes included.
This brings the total value of the wiring systems order to USD $82 million, which means the potential JSF order value for Stork and its subsidiary Fokker Elmo now amounts to USD $315 million. The added work will be carried out over the next two and a half years.