L-3 Communications has agreed to acquire the Detection Systems business
of PerkinElmer (PKI)
, for approximately $100 million in cash. The acquisition is expected to close by the end of the first quarter of 2002 and is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. Detection Systems is expected to be accretive to L-3's earnings in 2002.
PerkinElmer's Detection Systems business offers X-ray screening
for three major security applications
: aviation systems
for checked and oversized baggage, break bulk cargo and air freight; port and border applications including
pallets, break bulk and air freight; and facility protection, such as parcels, mail and cargo.
PerkinElmer's Detection Systems has a broad range of systems and technology, with an installed base of over 16,000 units. Detection Systems' customer base includes major airlines and airports, a number of domestic agencies, such as the U.S. Customs Service, U.S. Marshals Service
, U.S. Department of Agriculture
and U.S. Department of State, and international authorities throughout Europe, Asia
and South America.
"Now more than ever, this nation and other countries are focused on the importance of security for their people and their infrastructure," said Frank C. Lanza, chairman and chief executive officer of L-3 Communications
. "As a result, luggage, cargo and facility screening technology has become a critical element of our national security. By acquiring Detection Systems, we are taking a significant step in expanding our existing airport security systems business and becoming a major player in this industry."