GenCorp Inc. has announced that its subsidiary, Aerojet-General Corporation (Aerojet), signed an agreement to acquire the assets of General Dynamics’ Ordnance and Tactical Systems Space Propulsion and Fire Suppression business.
The cost of the acquisition, approximately $90 million in cash, will be financed using debt and is expected to be slightly accretive to GenCorp’s 2003 earnings.
The acquired business’ net sales for 2002 are expected to be approximately $60 million. The transaction is expected to close in the fourth quarter of this year, subject to receipt of standard regulatory approvals.
Located in Redmond, Washington, the acquired business employs about 300 people. It will continue to operate in Redmond as an integrated component of Aerojet’s operations.
‘This acquisition is key to our stated strategic objective of doubling the size of Aerojet within the next three years,’ said Terry Hall, president and CEO of GenCorp.
‘In addition to making Aerojet a market leader in spacecraft propulsion, this transaction enables us to expand into new growth areas such as electric propulsion and fire suppression, while strengthening our product offerings for emerging Missile Defence applications,’ added Michael Martin, president of Aerojet. ‘It also expands our role on the NASA Space Shuttle program.’