Litton Will Acquire Teledyne’s Two Electronic Systems Units

In a deal that would further consolidate Southern California’s defense industry, Litton Industries Inc. said Thursday that it will acquire Teledyne Inc.’s Electronic Systems operations in Northridge and Newbury Park.

Beverly Hills-based Litton said the deal includes the business operations and equipment of the two units but not the real estate, raising the prospect that some of the 1,200 Teledyne employees involved will be transferred.

Terms of the deal, which is subject to approval by both companies’ boards of directors and government regulators, were not disclosed. The sale is expected to close by year-end.

The two Teledyne plants manufacture airborne computers, radar and communication systems, “friend or foe” identification systems, and other devices for the defense industry, with revenue expected to exceed $150 million this year.

Both companies said the transaction would enhance their competitive positions. The Teledyne units’ customer base “is similar to Litton’s, the technologies are complimentary, and we would gain a large new base of installed equipment worldwide,” said John M. Leonis, chief executive of Litton.

Litton executives said most of the Teledyne workers at the two plants will be kept on, but they did did not rule out a relocation. “There is capacity in existing Litton buildings to handle the increase in business,” said Robert Knapp, a Litton spokesman.

The most likely destination for relocated workers would be Salt Lake City, site of Litton’s primary manufacturing operation.