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JULY 16, 2002, 11:00EDT
PARSIPPANY, N.J.-- DRS Technologies, Inc. has completed the acquisition of the assets and certain liabilities of the Navy Controls Division of Eaton Corporation for $92.2 million in cash. Renamed DRS Power & Control Technologies, the new company unit is expected to generate approximately $90 million in annual revenues and $0.20 in diluted earnings per share in its first twelve months of operation under DRS ownership. For the remainder of fiscal 2003 ending March 31, 2003, the business is expected to contribute $60 million to DRS's sales and $0.12 to diluted earnings per share.
"The addition of DRS Power & Control Technologies to our Electronic Systems Group uniquely positions DRS as a total ship computing systems provider," said Mark S. Newman, DRS Technologies' chairman, president and chief executive officer. "With an annuity-like business, significant intellectual property, experienced management team, and focus on ship networking and automation capabilities, this unit is strategically significant to DRS's long-term goals for growth in the defense-related electronic systems business. We view this transaction as a major step in our growth."
DRS Power & Control Technologies, located in Milwaukee, Wisconsin, and Danbury, Connecticut, is a leading supplier of high-performance power conversion and instrumentation and control systems for the U.S. Navy's combatant fleet, including nuclear-powered and conventionally-powered ships, in addition to specialized industrial customers. With a major installed base of electronic equipment in the fleet, DRS Power & Control Technologies is expected to benefit from the Navy's backfit, transformational conversion and modernization initiatives, as well as from new ship installation.
The addition of this unit to DRS's Electronic Systems Group strongly complements the company's presence in Naval advanced command and control computer display and other ship systems. Products include ship electric propulsion equipment, power electronics equipment, high-performance networks, shipboard control equipment and control panels, tactical displays and specialty reactor plant instrumentation and control equipment. The business employs over 600 people.
DRS Power & Control Technologies has the most diverse variety of power electronics equipment deployed or under development in Naval propulsion systems. The unit has captured key positions on next generation programs, including the Virginia class submarine and the CVNX future aircraft carrier, and has played a significant role in promoting electric drive propulsion for the Navy's next new ship design, the DD(X).
DRS Technologies provides leading edge products and services to government and commercial customers worldwide. Focused on defense electronics, the company develops and manufactures a broad range of mission critical systems and components in the areas of communications, combat systems, rugged computers, electro-optics, data storage, digital imaging, flight safety and space.
For more information, visit www.drs.com.
Military & Aerospace Electronics
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