Lockheed poised to announce sale of EIG-source

WASHINGTON, Oct 13 (BestGrowthStock) – Lockheed Martin Corp (LMT.N: )
has found a buyer for its Enterprise Integration Group unit and is
poised to announce the sale later on Wednesday, a source familiar
with the process told Reuters.

Reuters reported previously that Lockheed was selling the unit
for about $1 billion and had attracted interest from several
private equity firms.

Lockheed’s decision to sell EIG, which advises government
agencies on military platforms, was prompted by a tightening of
Pentagon rules aimed at removing potential organizational
conflicts of interest caused when contractors advise the
government on weapons systems they end up bidding for.

Lockheed does not break down results for EIG, but sources
told Reuters last month that a price of around $1 billion would
represent more than 15 times the unit’s earnings of $65 million
before interest, taxes, depreciation and amortization.

Lockheed has forecast 15 percent to 20 percent annual
growth in EIG’s EBITDA and has told potential bidders of a $150
million backlog likely to be awarded in the near future, the
sources said.
(Reporting by Andrea Shalal-Esa and Soyoung Kim; Editing by Lisa
Von Ahn)

Lockheed poised to announce sale of EIG-source