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."