Airbus Announces Plans to Divest PMR Business (9/16/14)
Tuesday, September 16, 2014 | Comments

Airbus Defence and Space plans to divest its professional mobile radio (PMR) and commercial satellite communications services activities following a detailed portfolio assessment.

The European-based company defined space (launchers and satellites), military aircraft, missiles and related systems and services as its future core businesses. “These are the areas in which the division will further invest to strengthen its leading position,” a company statement said.

Some business areas were identified as divestment candidates because they do not fit the strategic goals and for which the company sees possibilities to increase its development potential. The statement said the company’s commercial and para-public communications business including PMR will have better chances for growth and market success in different ownership structures. Airbus Defence and Space further intends to sell some of its subsidiaries and participations, including Fairchild Controls, Rostock System-Technik, AvDef, ESG and Atlas Elektronik.

Further industrial alternatives will be explored to best develop and position the security and defense electronics businesses for future growth and value creation.

"The portfolio decisions for Airbus Defence and Space are the logical follow-up to our group strategy review in 2013," said Tom Enders, CEO of Airbus Group. “They will foster the strengths of the division and, hence, will result in an even stronger focus on our group's core activities, aeronautics and space.”

The company reorganized three former business entities — Astrium, Airbus Military and Cassidian — into one single organization. This target was achieved 1 July. A next significant milestone was to secure the future of the division’s space launcher business, which received a major boost through the planned joint venture with Safran, announced in June and is being further developed, executives said.

Airbus DS Communications, Airbus' North American division formerly called Cassidian Communications, announced its name change and focus areas earlier this year.

"I can confirm that Airbus DS Communications Inc. is one of the business areas for which Airbus Defense and Space intends to explore other ownership possibilities," said an Airbus Group spokesperson. "While Airbus DS Communications continues to be extremely successful and a market leader, its products and services are not among the core areas on which Airbus Defense and Space intends to focus its efforts going forward. We expect that Airbus DS Communications Inc. will continue to thrive under new ownership that is willing to make the necessary investments in market access and industry-leading technologies."

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