Aerojet Strengthens Spacecraft Propulsion Capabilities with Applications On NASA, DoD and Commercial Satellites
SACRAMENTO, Calif., Aug 26, 2002 /PRNewswire-FirstCall via COMTEX/ --GenCorp
Inc. (NYSE: GY) today announced that its subsidiary, Aerojet-General Corporation
(Aerojet), signed an agreement to acquire the assets of General Dynamics' (NYSE:
GD) 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 projected to close in the fourth
quarter of this year, subject to receipt of standard regulatory approvals.
(Photo: http://www.newscom.com/cgi-bin/prnh/20010108/SFM125LOGO )
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 Defense applications," added Michael Martin, president of
Aerojet. "It also expands our role on the NASA Space Shuttle program."
"Our Space Propulsion and Fire Suppression businesses have talented, hardworking
employees and superb technology and capabilities," said Mike Wilson, president
of General Dynamics Ordnance and Tactical Systems. "Aerojet is a long-time
leader in the propulsion industry, and this is a perfect fit. We are sure that
these businesses will grow and thrive under Aerojet's leadership."
Aerojet, headquartered in Sacramento, California, is a world-recognized
aerospace and defense leader principally serving the missile and space
propulsion, and defense and armaments markets. GenCorp Inc. is a
technology-based manufacturer with leading positions in the aerospace and
defense, pharmaceutical and automotive industries. For more information, please
visit http://www.aerojet.com and http://www.gencorp.com.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately
54,000 people worldwide and anticipates 2002 revenue of $14 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. More information about the company can be found
at www.generaldynamics.com.
This release contains forward-looking statements as defined under securities
laws, including statements about business operations and sales. Such
forward-looking statements involve risks and uncertainties, which could cause
actual results to differ from the statements.
SOURCE GenCorp Inc.
CONTACT:
investors, Yasmin Seyal, senior vice president and chief
financial officer, +1-916-351-8585, or Yasmin.Seyal@GenCorp.com, or press,
Linda Beech Cutler, vice president, Corporate Communications, +1-916-351-8650,
or Linda.Cutler@GenCorp.com, both of GenCorp Inc.; or Norine Lyons, staff vice
president, Public Affairs of General Dynamics, +1-703-876-3190, or
nlyons@generaldynamics.com
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010108/SFM125LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 1-888-776-6555 or +1-212-782-2840
URL:
http://www.generaldynamics.com
http://www.aerojet.com
http://www.gencorp.com
http://www.prnewswire.com
Copyright (C) 2002 PR Newswire. All rights reserved.
