Thales signed an agreement with L-3 Communications

Thales today announces that it has reached an agreement on the sale of its fixed-wing civil simulation and aircrew training activities to L-3 Communications. The transaction would include Thales’s civil fixed-wing simulation activities in Crawley, UK, and its flight simulation training centre located in Bangkok, Thailand.

Thales will continue to develop its military system capabilities which remain part of our key product portfolio
Marion Broughton, head of Thales UK’s aerospace business, says: “Thales will continue to develop its military system capabilities, which remain part of our key product portfolio. However we feel that L-3 Communications Link Simulation and Training UK Ltd will be better placed to maximise the potential of the civil simulation business.”

Thales’s civil fixed-wing flight simulation business is a global producer of high-end simulation equipments for major airlines and aircraft OEMs worldwide. The fixed-wing civil simulation business has approximately 400 employees and generated revenues of €97m in 2011.

Thales will retain and continue to develop its simulation and training business in military and government markets, as well as rotary-wing aircraft for civil and military markets. The agreement includes a partnership with L-3 to secure the supply chain of civil components that Thales may require for its military business, which remains a strategic business for Thales.

It is intended that when the transfer of the business is complete any employee working wholly or mainly on fixed wing civil aircraft training and simulation activities within Thales will automatically transfer to L-3 Communications at this date. It is L-3’s intention to continue to operate from the current site in Crawley under the direction of L-3 Link Simulation & Training. Consultation on the proposed sale has now commenced with affected employees.

The transaction is expected to close in 2012, subject to regulatory approvals and other customary closing conditions.

Source: Thales Group (Paris: HO.PA)
Date: Apr 11, 2012