L-3 Communications (NYSE:LLL) announced today the acquisition of MacDonald Humfrey (Automation) Ltd ("MacDonald Humfrey") located in Luton, U.K. The acquisition was completed today for a purchase price of approximately £224 million (approximately $280 million). The purchase price is subject to an upward adjustment of up to £30 million (approximately $37.5 million), based on MacDonald Humfrey's post-acquisition performance for years ending December 31, 2017 to 2019, which would be payable in 2020. The acquisition was funded initially from revolving credit borrowings expected to be repaid before the end of December 2016 from free cash flow. MacDonald Humfrey will report to the L-3 Security & Detection Systems (L-3 SDS) division of the company's Electronic Systems business segment and will operate under the L-3 MacDonald Humfrey name. L-3 MacDonald Humfrey is projected to generate sales of approximately $135 million (£108 million) for the year ending December 31, 2017, and be accretive to earnings. The purchase price represents a multiple of approximately 10 times the business's estimated 2017 earnings before interest, taxes and depreciation and amortization (EBITDA). MacDonald Humfrey is a globally recognized leader in the deployment of operationally effective and efficient aviation checkpoint security solutions, as well as in the development of state-of-the-art process automation and collaborative robotic capabilities supporting aviation and other adjacent markets. With a global business base, MacDonald Humfrey has deployed its advanced solutions at airports in Europe, the Middle East and Canada. The company has recently engaged with airlines and airports in the United States to help reduce lengthy checkpoint delays and is also developing passenger and baggage tracking systems to facilitate efficient security throughputs at airports. As an adjacent business area, MacDonald Humfrey has engaged in programs to automate the assembly of aircraft engines and is a key supplier to other high-end process automation markets. The company has 350 employees.