CAE is expanding its flight simulator holdings while selling off its forestry unit, the company said Tuesday.
CAE said it has inked a deal with GE Capital Commercial Equipment Financing to acquire SimuFlite Training International Inc. a business jet training company for $247 million US, or approximately $390 million in Canadian funds.
Roughly $60 million US of the purchase will be financed by a sale and leaseback of certain long-term assets of SimuFlite provided by GE Capital.
CAE also said it will divest its forestry systems businesses and has retained CIBC World Markets to manage the sale. The Canadian, American and Finnish operations provide advanced technologies which enable the optimization of value from wood fibre resources.
"These are two pivotal moves which will strengthen CAE's future growth," CAE president and CEO Derek Burney said. "With the acquisition of SimuFlite, we are accelerating our move into aviation training. This will position us prominently in the business aircraft training market in the U.S.A. and make CAE the world's number two provider of training services to third parties."
"At the same time, the divestment of our forestry systems group will enable us to concentrate more exclusively on the provision of comprehensive training solutions in commercial aviation, defence and marine markets," Burney said.
Based in Dallas, Texas, SimuFlite has over 370 employees. SimuFlite currently operates 24 simulators, but will be operating 29 full flight simulators with annual revenues of approximately $150 million next year.