CAE to acquire TRU Simulation + Training Canada Inc
CAE to acquire TRU Simulation + Training Canada Inc |
[25-November-2020] |
MONTREAL, Nov. 24, 2020 /PRNewswire/ - (NYSE: CAE) (TSX: CAE) – CAE today announced that it has concluded a conditional agreement with Textron (NYSE: TXT) to acquire TRU Simulation + Training Canada Inc. (TRU Canada) for a cash consideration of approximately US$40 million, excluding post-closing adjustments. The closing of the transaction is subject to customary conditions and regulatory approvals. The acquisition of TRU Canada expands CAE's global installed base of commercial flight simulators and customers, and the addressable market for simulator lifecycle support services. TRU Canada also brings with it a backlog of simulator orders, full-flight simulator assets and provides access to a number of airline customers globally. TRU Canada is CAE's second announced acquisition in the last two weeks and demonstrates the Company's commitment to deploying the capital it is raising to strengthen the Company's position across its markets. The acquisition is aligned with CAE's strategic priorities and meets the strict financial parameters it has in place. It is expected to be accretive to earnings in its first full year. "We look forward to integrating the TRU Canada business within CAE. This acquisition demonstrates our ability to bolster our position and expand our addressable market and our global customer base during this unprecedented period of disruption. Along with the recently announced FSC acquisition, we have been able to make investments that are expected to better enable CAE to meet the global demands of our customers in support of their training and simulation needs," said Marc Parent, CAE's President and Chief Executive Officer. About CAE Facebook: www.facebook.com/cae.inc LinkedIn: www.linkedin.com/company/cae Hashtags: #CAE; #CAEpilot Caution concerning forward-looking statements Important risks that could cause such differences include, but are not limited to, the failure to gain access to expected capital resources within anticipated timeframes or at all, risks relating to the Acquisitions, such as all or part of the intended benefits therefrom not being realized or unanticipated integration-related issues, costs or delays, risks relating to the COVID-19 pandemic such as health and safety, reduction and suspension of operations, global economic conditions, diversions of management attention, heightened IT risks, liquidity risks and credit risks, risks relating to the industry such as competition, business development and awarding of new contracts, level and timing of defence spending, government-funded defence and security programs, constraints within the civil aviation industry, regulatory matters, natural or other disasters, environmental laws and regulations, climate change, risks relating to CAE such as evolving standards and technology innovation, the Corporation's ability to penetrate new markets, R&D activities, fixed-price and long term supply contracts, strategic partnerships and long-term contracts, procurement and original equipment manufacturer (OEM) leverage, product integration and program management, protection of the Corporation's intellectual property and brand, third-party intellectual property, loss of key personnel, labour relations, liability risks that may not be covered by indemnity or insurance, warranty or other product-related claims, integration of acquired businesses through mergers, acquisitions, joint ventures, strategic alliances or divestitures, reputational risk, U.S. foreign ownership, control or influence mitigation measures, length of sales cycle, seasonality, continued returns to shareholders, information technology and cybersecurity, the Corporation's reliance on technology and third party providers, data privacy, and risks relating to the market such as foreign exchange, availability of capital, credit risk, pension plan funding, doing business in foreign countries, geopolitical uncertainty, anti-corruption laws and taxation matters. Additionally, differences could arise because of events announced or completed after the date of this press release. More information about the risks and uncertainties affecting CAE's business can be found in the Management's Discussion & Analysis for the year ended March 31, 2020 and the Management's Discussion & Analysis for the quarter ended September 30, 2020. Any one or more of the factors described above and elsewhere in this press release, and in the documents referenced herein, may be exacerbated by the continuing COVID-19 pandemic and may have a more negative impact on CAE's business, results of operations and financial condition. Accordingly, readers are cautioned that any of the disclosed risks could have a material adverse effect on CAE's forward-looking statements. Readers are also cautioned that the risks described above and elsewhere in this press release, and in the documents referenced herein, are not necessarily the only ones the Corporation faces; additional risks and uncertainties that are presently unknown to the Corporation or that the Corporation may currently deem immaterial may adversely affect CAE's business. Except as required by law, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking information and statements contained in this press release are expressly qualified by this cautionary statement. Material Assumptions View original content:http://www.prnewswire.com/news-releases/cae-to-acquire-tru-simulation--training-canada-inc-301180284.html SOURCE CAE INC. | ||
Company Codes: NYSE:CAE, Toronto:CAE |
© 2020 PR Newswire. All Rights Reserved.