TORONTO --- CAE today announced it has signed a definitive agreement with GE Capital Commercial Equipment Financing to acquire 100% of the shares of a leading business jet training company, SimuFlite Training International Inc. (SimuFlite") for US$247 million (approximately C$390 million).
US$60 million of this will be financed by a sale and leaseback of certain long-term assets of SimuFlite provided by the seller. The transaction, which is subject to certain regulatory approvals, is expected to close by December 31, 2001.
CAE also announced it has made a strategic decision to divest its Forestry Systems businesses and has retained CIBC World Markets to manage a competitive sale process. The Canadian, American and Finnish operations provide advanced technologies which enable the optimization of value from wood fiber resources.
CAE President and Chief Executive Officer, Derek H. Burney stated: ""These are two pivotal moves which will strengthen CAE's future growth. With the acquisition of SimuFlite, we are accelerating our move into aviation training. This will position us prominently in the business aircraft training market in the U.S.A. and make CAE the world's number two provider of training services to third parties. At the same time, the divestment of our Forestry Systems group will enable us to concentrate more exclusively on the provision of comprehensive training solutions in commercial aviation, defense and marine markets.""
Headquartered in Dallas, Texas, with over 370 employees, SimuFlite is the world's second largest provider of business aviation training - the largest outsourced and full-service training market segment. The company provides over 100 initial and recurrent training programs to over 3,000 customers each year. SimuFlite currently operates 24 simulators, but will be operating 29 full flight simulators with annual revenues of approximately C$150 million next year.
The SimuFlite transaction represents CAE's second major flight training acquisition this fiscal year. In August, CAE concluded the acquisition of Schreiner Aviation Training of the Netherlands. The SimuFlite and Schreiner acquisitions, combined with CAE's own growing network of training facilities, will enable CAE to have in operation an installed base in excess of 70 full flight simulators next year.
CAE is a global leader in the provision of simulation and control technologies and training solutions for aerospace, defense and marine markets. Headquartered in Canada, CAE employs more than 7,000 people around the world and generates annual revenues in excess of C$1 billion.
" CAE Makes Pivotal Strategic Moves To Focus Growth