Hughes to Buy Big Supplier of Flight Trainers

Hughes Aircraft said Thursday that it has agreed to purchase Rediffusion Simulation, one of the world’s largest suppliers of flight simulators for civil and military aviation, from BET Ltd., an international services company in London, for $238 million.

Rediffusion manufactures 35% of the world’s flight simulators for pilot training by world airlines and 40% of the military simulators in Great Britain, according to El Segundo-based Hughes, a unit of General Motors. The deal is expected to close by the end of May.

Rediffusion Simulation operates in Crawley, England, and Arlington, Tex. It has annual sales of about $260 million and a work force of 2,500.

“The acquisition of Rediffusion augments Hughes’ existing capabilities and provides a strong entry in the growing trainer/simulator market,” said Hughes Chairman Albert D. Wheelon. “Hughes expects that simulators will be used increasingly by military customers to train pilots and operators as defense budgets flatten out.”

Hughes already operates in the $3-billion simulation market as a current producer of the weapons tactics trainer for the F-18 and the mission trainer for the F-14A, the company said.