Making its second acquisition deal in as many weeks, CAE reached a conditional agreement to acquire TRU Simulation + Training Canada from Textron for a cash consideration of $40 million. To close late this year or in early 2021, the transaction is subject to regulatory approvals.
Included in the transaction are TRU’s Montreal manufacturing operations, which primarily involve flight simulator devices for the air transport market, along with the ETOPS facilities in France and Malaysia and a minority interest in a joint venture in Iceland. TRU Simulation + Training Inc. and its Tampa, Florida operations remain in the Textron fold.
The acquisition will expand CAE’s reach into simulator lifecycle support services, in addition to adding simulator orders, full-flight simulator assets, and global airline customers, CAE said. This deal follows an agreement announced this month for CAE to buy Amsterdam, Holland-based Flight Simulation Co. (FSC) for €70 million ($83 million).
"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,” said CAE president and CEO Marc Parent. “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."