Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

BAE $510M Buy

LONDON -- Cash-rich BAE Systems PLC extended its position in the U.S. aerospace industry Thursday, saying it would buy the control-systems business of rival defense contractor Lockheed Martin Corp.

The British company's $510 million cash purchase will contribute to debt retirement at Lockheed, which said it was trying to focus on its core aerospace and defense markets.

The price, 1.4 times 1999 revenues of $360 million, somewhat exceeded the typical valuation of aerospace businesses at one times sales.

Lockheed Martin Control Systems, with facilities in Johnson City, New York, and Fort Wayne, Indiana, makes such products as the gear that controls aircraft flight and engine performance.