BOSTON, MA – Parthenon Capital announced that L-3 Communications (NYSE: LLL), agreed to acquire SSG Precision Optronics, Inc., subject to customary closing conditions and regulatory approvals. Financial terms of the transaction were not disclosed. The business is expected to have annual sales of approximately $60 million, and will be included in L-3’s Sensors and Simulation Group, which is reported in L-3’s Specialized Products reportable segment. The acquisition is expected to be slightly accretive to L-3’s earnings.
Dan Desmond, president of SSG Precision Optronics, Inc. stated, “SSGPO has been fortunate to be associated with Parthenon Capital over the past six years. With their advice and assistance, we have grown substantially, and are now looking forward to joining a large, successful aerospace company in L-3 Communications.” He added, “As an array of complementary, yet independent companies supplying to defense and aerospace prime contractors, L-3’s culture and business model matches SSGPO very well. We believe this cultural match and L-3’s commitment to advanced Electro-Optical businesses will provide SSGPO with even greater opportunities for our customers and employees.”
SSG provides optical systems and telescopes for space, missile and airborne applications. The company’s products include airborne pointing and scanning stabilized mirrors, stabilized gimbals and stabilized lightweight multi-spectral telescopes. SSG currently provides telescope equipment to the SBIRS-High initiative, mirror assemblies for the laser protection system for the Joint Strike Fighter and optical products to the James Webb Space Telescope and the National Ignition Facility, as well as to several classified space-based imaging initiatives. The company also is a key product supplier of laser communications subsystems and broadband communications components.
Frank C. Lanza, chairman and chief executive officer of L-3 Communications said, “With technologies that are key enablers of lightweight pods, turret and gimbal electro optical (EO) sensor systems, SSG is an excellent strategic fit for L-3.” Mr. Lanza also stated, “SSG complements our Wescam, Brashear and Sonoma EO businesses and we look forward to adding SSG’s technologies to further develop L-3’s high performance cost-effective EO sensor portfolio for ground, airborne and space applications.”
Mr. Lanza noted SSG’s capabilities are synergistic with future government requirements and that as a high performance niche supplier in the electro optical marketplace, SSG has the ability to produce transformational communications and hyperspecteral imaging systems for airborne, unmanned aerial vehicle (UAV) and space platforms. SSG also is well positioned to provide telescope solutions to Missile Defense Agency (MDA) initiatives, as well as key subsystems to the upcoming Transformational SATCOM Space Segment (TSAT SS) program.
Ernest K. Jacquet, managing partner of Parthenon Capital stated, “We have had a great relationship working with SSG and their skilled management team over the past six years. SSG has proven to be a leader in the optical systems and telescopes for space, missile and airborne applications industry.” Mr. Jacquet added, “SSG’s technological abilities will be a terrific addition to L-3.
SSG Precision Optronics has facilities in Wilmington, MA and Richmond, CA, and specializes in optics, telescopes and precision optical subsystems for government, military and commercial customers. The company is a leader in the design and manufacture of high performance optical components, sensors and subsystems for the space and tactical military markets. SSG’s customer base includes Department of Defense (DoD) prime contractors as well as government agencies and laboratories. For more information on SSG please visit www.ssginc.com.
L-3 Communications, headquartered in New York City, is a leading provider of Intelligence, Surveillance and Reconnaissance (ISR) systems, secure communications systems, aircraft modernization, training and government services. The company is a leading merchant supplier of a broad array of high technology products, including guidance and navigation, sensors, scanners, fuzes, data links, propulsion systems, simulators, avionics, electro optics, satellite communications, electrical power equipment, encryption, signal intelligence, antennas and microwave components. L-3 also supports a variety of Homeland Security initiatives with products and services. Its customers include the Department of Defense, Department of Homeland Security, selected U.S. Government intelligence agencies and aerospace prime contractors. To learn more about L-3 Communications, please visit the company’s web site at www.L-3com.com.
Parthenon Capital is a private equity firm with offices in Boston and San Francisco and over $1.1 billion of capital under management. With a staff of 45 people nationwide, Parthenon focuses on providing strategic resources and capital to middle-market companies for acquisition and internal growth strategies. Parthenon provides equity capital to companies with revenues between $50 million – $500 million. The firm invests in a wide variety of industries with a particular expertise in Business and Financial Services, Value-Added Distribution, Healthcare, Niche Manufacturing and Consumer Products. Please visit www.parthenoncapital.com for more information.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. Statements that are predictive in nature, that depend upon or refer to events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” and similar expressions are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in the company’s Safe Harbor Compliance Statement for Forward-looking Statements included in the company’s recent filings, including Forms 10-K and 10-Q, with the Securities and Exchange Commission. The forward-looking statements speak only as of the date made, and the company undertakes no obligation to update these forward-looking statements.