General Dynamics to Purchase Datron, Inc.'s IMCO Unit
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) and Datron, Inc. have entered into a definitive agreement for General Dynamics to acquire Datron’s Intercontinental Manufacturing Company (IMCO). Terms of the agreement were not disclosed. The proposed transaction has been approved by the boards of directors of both companies and is subject to normal regulatory approval; it is expected to close within 60 days. IMCO will become part of General Dynamics Ordnance and Tactical Systems, which is headquartered in St. Petersburg, Fla.
IMCO is an industry leader in the manufacture of aircraft bomb bodies for the U.S. armed services, including the various precision bombs used during the liberation of Iraq. The company develops and manufactures bomb bodies for almost all current series of 500-, 1000-, and 2000-pound bombs used by the U.S. Navy and U.S. Air Force. Located in Garland, Texas, IMCO employs approximately 600 people and anticipates revenues of approximately $145 million in 2003. The acquisition will be immediately accretive to General Dynamics’ earnings.
“With a strong market position and demonstrated financial performance, IMCO is a complementary fit for our core competencies in large caliber forgings and metal parts fabrication,” said Michael S. Wilson, President of General Dynamics Ordnance and Tactical Systems. “The acquisition is a significant step in meeting our product expansion and growth objectives in the world-wide munitions market.”
General Dynamics Ordnance and Tactical Systems manufactures large- and medium-caliber ammunition and precision metal components; provides explosive load, assemble and pack services for a variety of tactical missile and rocket programs; and designs and produces shaped charge warheads and control actuator systems.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 57,000 people worldwide and anticipates 2003 revenues of $15 billion. The company has leading market positions in mission-critical information systems and technologies, land and amphibious combat systems, shipbuilding and marine systems, and business aviation.
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.
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General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release -Friday, July 25, 2003
Press Contact: (703) 876-3199
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