Raytheon and Thales have announced that they are modifying the structure of their ThalesRaytheonSystems (TRS) joint venture. The two companies have reached an agreement and concluded the transaction to transition the stakeholder positions they each hold in the ThalesRaytheonSystems joint venture structure – TRS LLC US Operations and TRS SAS French Operations.

Created in 2001, TRS is a transatlantic joint venture that specializes in air operation command and control systems, surveillance radars, and ground-based weapon-locating radars. It is equally owned by Raytheon and Thales, with subsidiaries located in Fullerton, California, and Massy, France.

The JV has been restructured to focus solely on NATO agencies and NATO member nations for the delivery of the Air Command and Control System, Theatre Missile Defense, and Ballistic Missile Defense (ACCS).

The ground-based radars and non-ACCS-related air command and control systems currently within the joint venture portfolio will transition to their parent companies. The former TRS LLC – US Operations is now a wholly-owned subsidiary of Raytheon, Raytheon Command and Control Solutions. The former TRS SAS – French Operations is now a wholly-owned subsidiary of Thales.

Company structure transitions are effective immediately. As a result of the transaction, Raytheon has made a cash payment to Thales in the amount of $90m and will be recording a tax free gain of approximately $150m in its second quarter financial results.