02 Feb 2001
Ref: 012/2001
BAE Systems announces its agreement to sell its approximately 54% majority investment in BAE Systems Canada to ONCAP, an investment fund located in Toronto, Canada. This $CDN 594/$US 398.1 million** sale of 12,271,600 shares is at an agreed price of $CDN 25.25. (**$CDN 1.4920= $US 1.00, 1 Feb 01)
The transaction is subject to both Canadian and U.S. regulatory approvals because of the two U.S. subsidiaries of BAE Systems Canada, and is expected to close shortly after a special meeting of the shareholders in BAE Systems Canada anticipated to be held in April 2001.
Mark Ronald, president and CEO of BAE Systems North America, said, “BAE Systems Canada is an excellent business, with growth potential. We intend to maintain a strong business relationship with the Canadian business. Its core capabilities, however, diverge from our core concentration and focus. We are very pleased to have a Canadian group of the quality of ONCAP provide this business with the future it deserves.”
Ronald added, “This sale is not an exit from Canada, by any means. The company has a significant interest in long term programmes, such as the NATO Flying Training in Canada (NFTC) programme in Moose Jaw, Saskatchewan, and Cold Lake, Alberta, and the Victoria class submarines.”
In addition to the involvement of its Hawk aircraft in the NFTC, BAE Systems is the design authority for the Victoria class submarines that Canada has acquired from the UK Ministry of Defence. In addition to these, there are other programmes and services provided into and out of Canada for a worldwide market.
Note to Editors
BAE Systems is a truly global systems, defence and aerospace company. BAE Systems employs more than 100,000 people, in nine home markets around the world and has annual sales of some $19 billion. The company offers a global capability in air, sea, land and space with a world-class prime contracting ability supported by a range of key skills. BAE Systems designs and manufactures civil and military aircraft, surface ships, submarines, space systems, radar, avionics, communications, electronics, guided weapon systems and a range of other defence products.
BAE Systems North America employs 25,000 people in the design, development, integration, manufacture and support of a wide range of advanced aerospace products and intelligent electronic systems for government and commercial customers.
BAE Systems CANADA is a leader in the design, manufacture, sales and support of high-technology electronic products for the aviation, communications, infrared sensing, marine electronics, positioning and space markets.
ONCAP L.P. is a $CDN 400 million investment partnership established in December 1999 by Onex Corporation and several of Canada's largest pension funds and financial institutions. ONCAP was established to invest in small capitalisation North American-based companies in partnership with their management teams.
Onex Corporation is a diversified company with annual consolidated revenues of $20 billion, consolidated assets of $19 billion and 83,000 employees. Onex was ranked the 12th largest company in Canada in The Financial Post 500. It operates through autonomous subsidiaries that are leaders in their industries. They include Sky Chefs, Celestica, Inc., ClientLogic Corporation, InsLogic Corporation, Lantic Sugar Limited, Dura Automotive Systems, Inc., J.L. French Automotive Castings, Inc., MAGNATRAX Corporation and Performance Logistics Group, Inc. Onex shares trade on the Toronto Stock Exchange under the stock symbol OCX.
