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BAE Systems to sell Land Systems South Africa to Denel

BAE Systems selling its military vehicles company in South Africa for $80.1 million.
By Richard Tomkins   |   Updated Aug. 11, 2014 at 4:04 PM
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LONDON, Aug. 11 (UPI) -- A BAE Systems company in South Africa that produces military vehicles is to be sold to the country's Denel Group.

The transaction for BAE Systems Land Systems South Africa Proprietary Limited is for about $80.1 million. The purchase price covers not only BAE Systems' 75 percent interest in the company but also the 25 percent interest held by DGD Technologies.

"This proposed divestiture will further focus our portfolio on our core capabilities and strong franchise positions in tracked, combat and amphibious vehicles and weapon systems," said Erwin Bieber, president of BAE Systems Inc.'s Platforms & Services sector.

The deal requires regulatory and other approvals, BAE Systems said, and is anticipated to close in the fourth quarter of this year.

In addition to combat vehicles, BAE Systems Land Systems South Africa designs and manufactures mechanical driveline products, targeting systems and remote weapon launching platforms.

Additional details of the deal were not disclosed.

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