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BAE sells off its Flight Systems business |
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Wednesday, 17 September 2008 |
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BAE Systems will be selling Flight Systems to Calspan Corporation.
British aerospace and defence company BAE Systems has announced the signing of a definitive agreement to sell its Flight Systems business, located in California, to Calspan Corporation.
The cash deal is valued at $62.5 million (£35 million), plus an additional consideration to be paid out dependent upon the revenues that the business makes in the next five years.
Flight Systems, which has approximately 170 employees, performs a variety of aviation-related tasks, including aircraft modification, aircraft operations, flight tests and aerial full-scale targets production, both for military and commercial customers.
Mike Heffron, president of BAE Systems' electronics and integrated solutions group, said: "The sale is consistent with our strategy to expand BAE Systems' role as a developer and integrator of systems and de-emphasis our role as a subsystems and services provider.
"Flight Systems' 25-year legacy of experience should complement Calspan's capabilities in the aerospace business."
Meanwhile, the company recently released its interim results for the first six months of 2008, which revealed that sales increased to £7.8 billion, up 12 per cent from the same period last year. BAE Systems reported an operating profit of £789 million for the period.
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