CAE closes sale of its healthcare business to Madison Industries
by CM Staff
CAE also announces that it expects to incur restructuring expenses totaling approximately $40 million over the next two fiscal quarters.
MONTREAL — CAE Inc. announced the closing of the sale of its Healthcare business to Madison Industries for an enterprise value of C$311 million, subject to customary adjustments. This follows CAE’s announcement on October 24, 2023, of the execution of a definitive agreement in respect of the transaction.
As previously disclosed, CAE intends to use the net proceeds of this sale principally to accelerate deleveraging, as well as to support its continued focus on technology advancement, market leadership and cost optimization within the Company’s core training, simulation, and aviation software markets.
With the successful divestiture of the Company’s Healthcare business, CAE is trying to streamline its operating model and portfolio, optimize its cost structure and create efficiencies. To that effect, CAE also announces that it expects to incur restructuring expenses totaling approximately $40 million over the next two fiscal quarters.
