Elbit Systems (Nasdaq: ESLT; TASE: ESLT) US subsidiary Kollsman, Inc. has bought a 20% stake in privately-held Californian company Sandel Avionics, Inc. for $12 million.
Sandel produces specialized integrated display systems and other products for the commercial aviation market.
Kollsman has an option to buy the remaining 80% of 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.
Elbit Systems said it was assessing the impact of this acquisition on its consolidated financial statements for the second quarter of 2006.
Elbit Systems president Joseph Ackerman said, "Consistent with our strategic plan, we continue to strengthen our position in the commercial aviation market. 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."
Published by Globes [online], Israel business news - www.globes.co.il - on June 4, 2006
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