L-3 Acquires MacDonald Humfrey

L-3 Communications announced that it has acquired UK-based MacDonald Humfrey (Automation) Ltd. for a purchase price of $280 million plus an earnout of up to $37.5 million subject to its performance during calendar years 2017 to 2019.  MacDonald Humfrey deploys aviation checkpoint security solutions and develops automation and collaborative robotic capabilities in the aviation and adjacent markets.  The company has 350 employees and is projected to generate revenues of approximately $135 million in calendar year 2017 and EBITDA of approximately $28 million (based on a stated EBITDA multiple of 10 times).  MacDonald Humfrey will operate as part of the L-3 Security & Detection Systems division which is part of the company's Electronic Systems business segment.