L-3 Communications Holdings Inc. has agreed to buy Crestview Aerospace Corp., a closely held maker of helicopter fuselages, for $135 million in cash.
The new unit will probably have 2006 sales of $120 million and add "slightly" to profit, L-3 said Wednesday in a prepared statement. New York-based L-3, a U.S. defense contractor whose Communications Systems-West in Salt Lake City employs 2,300 people, is buying the former Fairchild Industries Inc. unit from the family of President Charles R. Shanklin. Crestview is L-3's second purchase in a week.<
L-3 Chief Executive Officer Frank Lanza has made more than 80 acquisitions since founding the company with 10 divisions bought from Lockheed Martin Corp. in 1997. Crestview, which also refurbishes aircraft for companies such as Boeing Co. and Textron Inc.'s Bell Helicopter, said it approached its biggest customers in December over a possible transaction.
"Others were interested, but Frank moved very fast," Shanklin, 47, said in an interview. His 77-year-old father, Chief Executive Officer Charles E. Shanklin, bought the Crestview, Fla.-based company out of bankruptcy in 1990.
L-3 is already a partner with Crestview for work on Lockheed's C-130 transport and United Technologies Corp.'s Sikorsky H-60 Blackhawk helicopter.
The Shanklin family restarted Crestview's operations in 1991 with 13 employees. The younger Shanklin said Crestview now employs 1,258 people. Three other members of the family work for the company, and his father will step down as CEO once the deal is done.
Shanklin said the family decided to sell in part because of potential estate tax problems. Shanklin and his siblings will stay on to run the company, a typical practice of L-3. Bank of America Corp. acted as financial adviser to Crestview.
On May 18, L-3 agreed to buy TRL Electronics, a U.K. maker of bomb detectors, for 89.7 million pounds ($168.1 million).