Fredericks Michael & Co. acted as exclusive financial advisor to Wärtsilä Corporation on its strategic acquisition of L-3 Marine Systems International from L-3 Communications Holdings, Inc. L-3 Marine Systems International is a business unit within L-3 Communications Holdings, Inc.’s Electronic Systems business segment.
MSI is a turnkey supplier of complete electrical systems, as well as integrated navigation, automation, communications, energy distribution and propulsion systems for all types of ships. MSI has 1,700 employees in 38 locations and 14 countries. MSI is expected to generate approximately EUR400 million of sales for the year ending December 31, 2014. The transaction is valued at EUR285 million (enterprise value). After estimated adjustments of cash, working capital, and pension liabilities, the purchase price is estimated to be EUR295 million.
The acquisition will create a powerful electrical and automation business, which is unique in its sector competence and breadth of capabilities. The deal is fully in line with Wärtsilä’s growth strategy to become the leading provider of innovative products and integrated solutions in the marine and oil & gas industries.
FM&Co. advised Wärtsilä Corporation (“Wärtsilä”) on a multi-step engagement which included the development and execution of a strategic search and screen process, identification of MSI as an acquisition target in line with Wärtsilä’s strategic objectives, and acquisition advice including valuation, transaction structuring, and management of business, financial, environmental and legal due diligence, recommending negotiating strategies and tactics through closing of the transaction.
About Wärtsilä Corporation
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasizing technological innovation and total efficiency, Wärtsilä maximizes the environmental and economic performance of the vessels and power plants of its customers. In 2014, Wärtsilä's net sales totaled EUR4.8 billion with approximately 17,700 employees. Wärtsilä has operations in more than 200 locations in nearly 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland. For more information, visit www.wartsila.com
About L-3 Communications Holdings, Inc.
Headquartered in New York City, L-3 employs approximately 45,000 people worldwide and is a prime contractor in aerospace systems and national security solutions. L-3 is also a leading provider of a broad range of communication and electronic systems and products used on military and commercial platforms. L-3 reported 2014 sales of USD12.1 billion. L3 is listed on the New York stock exchange. For more information, visit www.l-3com.com