JF Lehman to buy BAE division

Defense-focused private equity firm JF Lehman is set to acquire BAE Systems’ Inertial Products business for $140 million.

UK defense and aerospace company BAE Systems has agreed to sell its Inertial Products division to New York private equity firm JF Lehman in a $140 million (€103 million) cash transaction.

The  division supplies military and commercial customers with inertial sensors and measurement units for use in aircraft, precision weapons systems, missiles, tanks, unmanned aerial vehicles and other applications. Inertial Products has approximately 810 employees at facilities in Cheshire, Connecticut; Heath, Ohio; Wayne, New Jersey and Plymouth, England.

The sale of the division is in line with BAE’s “strategy to expand as a developer and integrator of systems and de-emphasise its role as a components provider”, the company said.

The transaction is subject to regulatory approvals, and is expected to close in 60 days.

Founded in 1992 by former US Naval secretary John Lehman, JF Lehman invests in middle-market defense, aerospace and maritime companies and their related technologies.

To date, the firm says it has completed the acquisition of 14 companies in 11 investments with an aggregate value of approximately $1.4 billion.