LONDON, Jan. 31 (UPI) -- British company BAE Systems said earlier this month it had concluded an agreement to buy Tenix Defence.
BAE Systems said in a statement Jan. 18 it had "entered into an agreement to acquire the companies comprising Tenix Defence, a leading Australian defense contractor, for up to A$775 million -- around $680 million -- in cash."
"Tenix Defence comprises four wholly owned businesses and two joint venture interests. Terms have been agreed to acquire the wholly owned business for A$686 million -- around $600 million. Subject to pre-emption rights not being exercised, the joint venture interests will form the remainder of the transaction," BAE Systems said:
"Tenix Divisions comprise Tenix Land: a leading military vehicle supplier and provider of through life support to the Australian Defense Force with an additional presence in defense services; Tenix Aerospace: a provider of systems integration, modification and support activities, including through-life support, across a number of major aircraft platforms; Tenix Electronic Systems: an information and defense electronics business with a core capability in technology and subsystems development; (and) Tenix Marine: a leading provider of maritime acquisition and support programs in Australia, New Zealand and the South East Asian region," BAE Systems said.
"The two joint ventures are RLM, with Lockheed Martin, which provides ongoing system upgrade, maintenance and support services for the Jindalee Operational Radar Network and Tenix Toll Defence Logistics, with Toll Logistics, which manages warehousing, engineering, distribution and maintenance activities for the Australian Defense Force," BAE Systems said.
"Tenix Defence will be integrated with the operations of BAE Systems Australia, headquartered in Adelaide," BAE Systems said.
"The acquisition of Tenix Defence more than doubles BAE Systems' presence in Australia making it the largest in-country defense supplier to the Australian Defense Force. With over 5,500 people and annual sales of over A$1.2 billion -- around $1 billion -- the company will deliver enhanced capabilities in the Land, Sea, Air and Joint domains. The organizations are an excellent fit and have largely complementary programs and capabilities," BAE Systems said.