LOS ANGELES, April 20, 2001 (PRIMEZONE) -- Northrop Grumman Corporation (NYSE:NOC) announced today that it has signed a definitive agreement to acquire the Electronics and Information Systems Group of Aerojet-General Corporation for $315 million in cash. Aerojet-General is a wholly owned subsidiary of GenCorp Inc. (NYSE:GY).
The Aerojet-General unit had 2000 revenues of $323 million and specializes in spaceborne sensing for early warning systems, ground systems that process data from space-based platforms, and smart weapons technology for high-priority U.S. government national security programs.
"The acquisition of Aerojet-General's Electronics and Information Systems Group enhances our capabilities in space sensors and systems and strengthens our advanced battlefield management business focus," said Kent Kresa, Northrop Grumman's chairman, president and chief executive officer. "Their strong customer base and core technical expertise in remote sensing systems, signal processing and ground systems are highly complementary to Northrop Grumman's defense electronics businesses as well as our thrust into information warfare and further increases the company's missile defense program capabilities."
The transaction is subject to normal government reviews and is expected to close during this summer. Upon completion of the transaction, the Aerojet-General unit will be integrated into the Aerospace Division of Northrop Grumman's Electronic Sensors and Systems Sector (ES3), based in Baltimore, Md. Aerojet-General's Electronics and Information Systems Group has approximately 1,400 employees at facilities in Azusa, Calif., Boulder, Colo., and Colorado Springs, Colo. Northrop Grumman stated that it doesn't anticipate any lay-offs as a result of the transaction.
Salomon Smith Barney is the financial advisor to Northrop Grumman in this transaction.
Northrop Grumman's ES3, headquartered in Baltimore, is a world leader in the design, development and manufacture of defense electronics and systems, precision weapons, airspace management systems, space systems, marine systems, logistics systems, and automation and information systems.
Northrop Grumman Corporation is a $15 billion, global aerospace and defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and non-nuclear shipbuilding and systems. With 80,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.
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