FALLS CHURCH, Va., May 17 /PRNewswire-FirstCall/ -- General Dynamics today entered into a definitive agreement with Chamberlain Manufacturing Corporation (CMC) to acquire CMC's Scranton, Penn., division, a manufacturer of artillery projectiles and 120mm mortar bodies. CMC is a wholly-owned subsidiary of Elmhurst, Ill.-based Duchossois Industries, Inc. Terms of the acquisition will not be disclosed; the acquisition will be immediately accretive to General Dynamics.
The acquisition has been approved by the boards of directors of both companies and is subject to normal regulatory approval. General Dynamics expects the transaction to be completed in the third quarter of 2006.
CMC's Scranton operation, which has approximately 400 employees, is a leading supplier of large-caliber projectile metal parts to the U.S. government, including forged bodies for 105mm artillery, 120mm mortars and 155mm artillery ammunition.
The Scranton operation will become part of the General Dynamics Ordnance and Tactical Systems business unit, which is a world leader in the manufacture of large- and medium-caliber direct- and indirect-fire munitions, bomb bodies and Ball Powder(R) propellant. General Dynamics also manufactures precision metal components and designs and produces shaped-charge warheads and control actuator systems.
Michael S. Wilson, president of General Dynamics Ordnance and Tactical Systems, said, "This acquisition will provide tangible benefits for our armed forces customers and will allow us to expand our focus in one of our core capabilities."
James Flaherty, president of CMC's Scranton organization, said, "We are delighted at the prospect of being part of General Dynamics. This combination will deliver positive results for our customers, employees, and suppliers, enabling us to continue delivering industry-leading products. Our entire team looks forward to contributing to the success of General Dynamics."
Duchossois Industries is a privately held company, headquartered in Elmhurst, Ill., which owns The Chamberlain Group, AMX Corporation and Duchossois Technology Partners. Duchossois Industries also holds a strategic interest in Churchill Downs, Inc., and a number of other diversified businesses.
General Dynamics Ordnance and Tactical Systems is based in St. Petersburg, Fla.
General Dynamics, headquartered in Falls Church, Va., employs approximately 72,200 people worldwide and had 2005 revenue of $21.2 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation. More information can be found at http://www.generaldynamics.com/.
This press release contains certain forward-looking statements that are based on management's expectations, estimates, projections and assumptions. Words such as "expects," "anticipates," "plans," "believes," "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Actual future results and trends may differ materially from what is forecast in forward-looking statements.
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