Lockheed spins off former Loral units

Maryland Watch

April 04, 1997

Lockheed Martin Corp. has made final a $525 million deal to spin off 10 business units into an independent communications technology company, the Bethesda defense contractor said yesterday.

The new enterprise, L-3 Communications Holdings Inc., is being created from former components of Loral Corp., which Lockheed Martin purchased last year.

Yesterday's announcement completed a transaction first disclosed in February.

Lehman Bros. Capital Partners III LP, a merchant banking partnership affiliated with Lehman Bros. Holdings, will control half of the new company.

Lockheed Martin will retain 35 percent ownership, and the management team will hold 15 percent.

Frank C. Lanza, the former president and chief operating officer of Loral, will serve as chairman and chief executive officer of L-3 Communications. Robert V. LaPenta, another former Loral executive, will be president and chief financial officer.

The new company will have headquarters in New York City, about 5,000 employees and revenue of about $650 million. It has units in seven states.

Pub Date: 4/04/97

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