British Aerospace to Buy Lockheed Unit

A subsidiary of British Aerospace has agreed to buy Lockheed Martin’s control systems division for $510 million in cash, the U.S. defense contractor announced. British Aerospace’s BAE Systems will buy the division, which has facilities in Johnson City, N.Y., and Fort Wayne, Ind. The division supplies electronic controls for commercial and military markets, including aircraft, space and ground transportation systems. The division had revenue of about $360 million in 1999 and employs 1,750 people. The control systems division was among several units identified as candidates for divestiture by Lockheed under a plan to focus on core businesses and generate cash to reduce debt. The sale must be approved by U.S. regulators. Shares of Bethesda, Md.-based Lockheed fell 25 cents to close at $23.88 on the NYSE.