24th Dec 2007 07:00
BAE SYSTEMS PLC22 December 2007 21 December 2007 BAE SYSTEMS ANNOUNCES AGREEMENT TO ACQUIRE MTC TECHNOLOGIES, INC BAE Systems today announced it has entered into a definitive agreement toacquire MTC Technologies, Inc, a Dayton, Ohio-based company providing technicaland professional services, and equipment integration and modernization for theU.S. military and intelligence agencies. MTC Technologies, Inc shareholders will receive U.S.$24 in cash per share ofcommon stock, without interest, in the transaction, representing a totalconsideration for MTC Technologies, Inc fully diluted share capital ofapproximately U.S.$367 million. Including the assumption of net debt of U.S.$81million, the transaction is valued at approximately U.S.$448 million. For the twelve month period ended 30 September 2007, MTC Technologies, Incgenerated EBITDA of U.S.$38 million (excluding a U.S.$1.5 million restructuringcharge) on sales of U.S.$432 million. As at 30 September 2007, MTCTechnologies, Inc had net assets of U.S.$187 million. The acquisition of MTC Technologies, Inc is consistent with BAE Systems strategyto grow its support solutions business in six home markets, including the UnitedStates, where the company sees significant opportunity to address anticipatedgrowth in readiness and sustainment activity including the maintenance, upgradeand support of existing air, land and naval platforms. MTC Technologies, Inc, which currently employs approximately 2,900 people, willbe integrated into BAE Systems Customer Solutions operating group, headquarteredin Arlington, Virginia, as part of the company's Technology Solutions & Services(TSS) line of business. The combination of MTC Technologies, Inc with BAE Systems is an outstanding fitwith very complementary offerings, and will position the organization to bringproven capabilities to a broader spectrum of customers. BAE Systems has longbeen recognized as a leading provider of solutions and services across aproduct's life-cycle for the U.S. Navy. MTC Technologies, Inc similar expertisein supporting U.S. Air Force and U.S. Army programs will create an organizationpoised to deliver critical solutions to its customers throughout the U.S. ArmedForces and the U.S. intelligence community. The proposed acquisition is conditional, among other things, upon receivingcertain required regulatory clearances and the approval of MTC Technologies,Inc, shareholders and is expected to close in the first half of 2008. Issued by:BAE Systems plcLondon This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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