Eaton Corporation to sell Navy Controls

DRS Technologies has signed a definitive agreement to acquire the assets and certain liabilities of the Navy Controls Division of Eaton Corporation for $92.2 million in cash.

The transaction is expected to close by June 30 and will be accretive to earnings in DRS’s current fiscal year ending March 31, 2003.

The Navy Controls Division (NCD), located in Milwaukee, WI, and Danbury, CT, is a supplier of high-performance power conversion and instrumentation and control systems for the US Navy’s combatant fleet, including nuclear-powered and conventionally-powered ships, in addition to specialised industrial customers.

The business employs approximately 600 people and is comprised of four major product lines: Navy Nuclear Systems, Ship Control Systems/Networks, Propulsion Systems and Industrial Systems.

‘In its first twelve months of operation under DRS ownership, NCD is expected to contribute approximately $90 million to annual sales and $0.20 to diluted earnings per share,’ said Mark S. Newman, DRS Technologies’ chairman, president and chief executive officer.

DRS expects to acquire NCD by using existing cash currently invested in short-term securities.

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