BAE executives say they don't anticipate major workforce cuts to new acquisitions

By Marjorie Censer / January 27, 2020 at 5:30 AM

BAE Systems executives told Inside Defense last week they expect to integrate their two newly announced acquisitions as "relatively intact businesses" and aren't expecting to make significant employee reductions.

In an interview at the company's Arlington, VA, headquarters, Jerry DeMuro, chief executive of BAE's U.S.-based business, and Tom Arseneault, its president and chief operating officer, said the opportunity to acquire Collins Aerospace's military GPS business and Raytheon's airborne tactical radio business was unique.

"These are two businesses that would have never come on the market had it not been for the larger merger," Arseneault said. The two businesses are being sold in connection with the planned merger between Raytheon and United Technologies.

He said the units will "bolt into existing businesses" within BAE's electronics systems sector. DeMuro added that they will effectively become product lines within the business.

The military GPS business has about 675 employees, while the radio unit has about 100 employees, according to BAE. BAE's electronic systems unit currently has about 15,300 employees.

DeMuro said he's not expecting significant cost synergies. The deal, he said, is about "market synergies."

A BAE spokeswoman said the deals are expected to close at roughly the same time as the Raytheon-United Technologies merger.