Litton to Use Stock Merger to Purchase Sperry Marine

Litton Industries Inc. has agreed to buy Sperry Marine Inc. in a $160-million stock merger.

Sperry Marine, based in Charlottesville, Va., makes electronic navigation and guidance systems used in boats and aircraft for commercial and military customers. Sperry Marine had sales of $145 million in 1995.

Litton will issue about 2 million shares of common stock to an investment partnership led by J.F. Lehman & Co., and assume Sperry’s outstanding debts of $52 million.

Litton, based in Woodland Hills, is a major defense contractor and specializes in navigation systems as well as building surface combat ships.