Purchase Will Boost Litton’s Defense Unit

Beverly Hills-based Litton Industries, in a move that bolsters its position as one of the world’s leading makers of electronic warfare systems, has completed its purchase of the Defense Systems group of General Instrument Corp.

Terms of the deal were not disclosed. But analysts pegged the purchase price at $80 million to $90 million.

Litton, a diversified manufacturer of advanced electronics, has seen growth slow in recent years in its electronics systems division, which accounts for 39% of the company’s profits. But officials said the acquisition of the General Instrument’s group, with estimated annual sales of $180 million, would boost Litton’s electronic warning systems business and help the company pursue opportunities in the Army aviation market.

“The new operations will contribute immediately to our earnings,”’ predicted Joseph F. Caligiuri, Litton executive vice president responsible for the company’s Advanced Electronic Systems activities. Litton had revenue of $5.1 billion last year.

In trading Monday on the New York Stock Exchange, Litton’s stock closed at $82.50, up 87 1/2 cents.

The purchase of General Instrument’s Defense Systems group includes three divisions: Dalmo Victor in Belmont, Calif.; Government Systems in Hicksville, N.Y., and Northern Scientific Laboratories in Livingston, N.J. The three facilities employ about 1,300 people.

General Instrument is a leading maker of electronic technologies.