General Dynamics Completes Acquisition of Advanced Technical Products, Inc. for $250 Million
Forms New Unit: General Dynamics Armament and Technical Products
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today completed its acquisition of Advanced Technical Products, Inc. (ATP) of Roswell, Georgia. Under the agreement, announced on May 2, 2002, and approved by ATP shareholders on June 12, 2002, General Dynamics acquired all 5.89 million outstanding shares of Advanced Technical Products (ATP) for a cash purchase price of $33.50 per share. In addition, General Dynamics assumed ATP’s net debt and retired ATP stock options, bringing the transaction’s value to approximately $250 million. The acquisition is immediately accretive to General Dynamics’ earnings.
ATP’s 1,400 employees are now part of General Dynamics Armament Systems, and the combined entity will be known as General Dynamics Armament and Technical Products. Linda Hudson, who had been president of Armament Systems, is president of the new organization.
The combination gives General Dynamics Armament and Technical Products a strong position on key programs aligned with homeland defense and DoD transformation initiatives. It is also well positioned in composites technology and production, and integrated armament products for air, land, and sea platforms.
General Dynamics Armament and Technical Products, headquartered in Burlington, Vermont, provides a broad range of system solutions for military and commercial applications. It designs, develops and produces high-performance armament systems; a full range of advanced composite-based products; biological and chemical detection systems; tactical deception equipment; and mobile shelters. The business employs approximately 2,400 people, and has facilities in Saco, Maine; Glen Cove, N.Y.; Princeton, N.J.; Crystal City, Va.; Marion, Va.; Lincoln, Neb.; Camden, Ark.; Stone County, Miss.; and Deland, Fla.
General Dynamics, headquartered in Falls Church, Va., employs approximately 54,000 people worldwide and had 2001 revenues of $12 billion. The company has leading market positions in land and amphibious combat systems, mission-critical information systems and technologies, shipbuilding and marine systems, and business aviation.
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Any forward-looking statements in this press release are based on management’s expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "anticipates," "scheduled," "estimates," variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, segment performance, aircraft production and deliveries, cash flows, contract awards and aircraft backlog stability. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: the company’s successful execution of internal performance plans; performance issues with key suppliers and subcontractors; the status or outcome of legal and/or regulatory proceedings; the status or outcome of labor negotiations; changing customer demand or preferences for business aircraft; changes from the company's historical experience with respect to its customers' exercise of business aircraft options; changing priorities or reductions in the U.S. government defense budget; termination of government contracts due to unilateral government action; and the timing and occurrence (or non-occurrence) of circumstances beyond the company’s control.
General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Friday, June 14, 2002
Press Contact: (703) 876-3190
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