Kollsman Acquires 20 Percent Interest in Sandel Avionics
Thu, 01 Jun '06
Furthers Expansion Into Commercial Aviation Market
Elbit Systems Ltd. announced Wednesday that its US subsidiary Kollsman, Inc. has acquired a 20 percent interest in Sandel Avionics, Inc. for $12 million. Vista, CA-based Sandel produces specialized integrated display systems and other products for the commercial aviation market.
"Consistent with our strategic plan, we continue to strengthen our position in the commercial aviation market," said Joseph Ackerman, president of Elbit Systems Ltd. "The commercial aviation product line, including the current investment in Sandel, adds to our portfolio balance and provides us with the opportunity to apply our technological capabilities into a growing market that is focused on safety and operational enhancements."
As part of the proposed acquisition, Kollsman has an option to buy the remaining 80 percent interest in Sandel for a period of 30 months after the initial investment. During the option period, Kollsman has the right to representation on the Sandel board of directors, as well as several specific minority rights. In addition, Kollsman and Sandel have formed an alliance to cooperate on product development and marketing.
It is expected that some of Kollsman's new products -- like the General Aviation Vision System (GAViS), the micro-vision head-up display (micro-ViS HUD) and the Enhanced Synthetic Vision System (ESViS) -- will be integrated with the Sandel Display for the General Aviation Market.
Elbit Systems is currently assessing the impact of this acquisition on its consolidated financial statements for the second quarter of 2006.
"There is a growing market worldwide for aviation safety," said Randy Moore, executive vice president and general manager of Kollsman. "The industry's demand for a broad-based technology that includes imaging systems, sensors and displays like the Vision-Based Cockpit presents us with the potential for continued growth and the ability to reach a wider customer base. We see tremendous synergies between the technologies provided by the Elbit Group and the strong position held by Sandel in the commercial aviation market."
Sandel president Gerry Block confirmed his company and Kollsman are cooperating on a project for commercial aircraft displays.
"We believe that the synergy between the two companies and their complementary product lines will result in a greater market share and an advanced product portfolio to offer our customers," said Block. "We are pleased that a company which is considered a technological leader has recognized the value of investing in Sandel, and we are certain that the investment and the cooperation going forward will be valuable to both companies."
FMI: www.kollsman.com, www.sandel.com
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