W?rtsil? Completes Acquisition of L-3 MSI
Wärtsilä Corporation announces that its acquisition of the Germany based L-3 Marine Systems International (MSI) has been finalized and control of the company will be transferred to Wärtsilä with effect from June 1, 2015.
In December 2014, Wärtsilä announced that agreement had been reached to acquire MSI from NYSE-listed L-3 Communications Holdings using financing from existing cash resources and credit facilities. The acquisition received Korean merger control clearance in March and E.U. clearance in April.
Electrical and Automation (E&A) systems are of increasing importance since the operation of ships is becoming ever more sophisticated. Wärtsilä's strong position in the development of technologies that enhance operational efficiency will be further strengthened with the addition of MSI's broad range of capabilities. The company's portfolio comprises several well-known product brands, including SAM Electronics, Valmarine, Lyngsø Marine, Dynamic Positioning & Control Systems, Jovyatlas Euroatlas, ELAC Nautik, FUNA, GA International and APSS.
MSI has extensive experience in supplying automation, navigation and electrical systems, dynamic positioning technology as well as sonar and underwater communications technology for a variety of vessel types and offshore installations. The MSI organization, which currently comprises more than 1700 employees working from 38 locations in 14 countries, will be integrated with Wärtsiläs existing E&A business.
The acquisition will notably enhance Wärtsilä's E&A offering and market position. In 2014 MSI reported an operating profit of seven percent. Wärtsilä foresees that the new unit will be able to capture new market opportunities and improve operational efficiency for its customers, thereby increasing both the sales and profitability of the business.