General Dynamics to Buy Spain's ENSB, Maker of Combat Vehicles and Munitions
New entity would be known as Santa Barbara Industries S.A., A General Dynamics Company
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) announced today that it has entered into an agreement to acquire Empressa Nacional Santa Barbara de Industrias Militares, S.A., of Madrid, Spain, as well as Santa Barbara Blindados, S.A., of Seville. Owned by Sociedad Estatal de Participaciunes Industriales (SEPI) and known collectively as ENSB, the company produces combat vehicles and munitions for the Spanish Army. General Dynamics has agreed to make capital investments of approximately $60 million in ENSB over the next five years. ENSB had 1999 sales of approximately $95 million; it has a funded backlog of approximately $2 billion, which includes a contract to provide a main battle tank for the Spanish Army.
The transaction could close within the year, pending approval by the government of Spain and the General Dynamics board of directors. After the acquisition is completed, ENSB will be known as Santa Barbara Industries S.A., A General Dynamics Company; it will become part of the company’s Combat Systems group.
"This is an exciting and innovative agreement with obvious benefits to both sides," said Arthur Veitch, General Dynamics senior vice president – Combat Systems. "For General Dynamics, it provides an opportunity for cooperation in European, South American and North African combat vehicle and armaments markets. It brings us complementary product lines – as well as the Spanish main battle tank program – for an attractive purchase price. The transaction will add strength and stability to Spain’s defense industrial base. It assures long-term employment for ENSB and provides product and process technologies to make it more competitive in world markets."
Under the terms of the agreement, ENSB’s work force and management team will remain in place. General Dynamics will participate in the management of ENSB while the sale is being completed; L. Charles Meeks Jr. will head the General Dynamics transition team. Meeks had been vice president–Business Development for General Dynamics Armament Systems.
ENSB has approximately 2000 employees in nine locations in Spain. Its principal products include the Spanish Leopard main battle tank, built under license to a German company; the Pizarro, a tracked infantry fighting vehicle; weapons such as the 155/52 Howitzer and the 40mm grenade launcher; and other munitions.
General Dynamics, headquartered in Falls Church, Virginia, has leading market positions in shipbuilding and marine systems, land and amphibious combat systems, information systems, and business aviation. The company employs approximately 43,000 people worldwide and has annualized sales of approximately $10 billion.
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Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Thursday, April 13, 2000
Press Contact: (703) 876-3190
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