General Dynamics (NYSE: GD) reports that it has entered an agreement to acquire MetroMachine Corp., a leading East Coast surface-ship repair company that supports the U.S. Navy fleet in Norfolk, Va. The value of the cash transaction, which is expected to be accretive to General Dynamics' earnings beginning in 2012, has not been disclosed. The transaction is subject to normal regulatory approvals and is expected to close in November.
Metro Machine Corp. is a privately held company which employs approximately 400 workers. It has been conducting U.S. Navy ship repair and conversions since 1972. With a full service shipyard in Norfolk, Metro Machine Corp. is a prime contractor in Norfolk for multi-ship, multi-option (MSMO) contracts for combat and support ships for the U.S. Navy, including frigates (FFGs), dock landing ships (LSDs) and amphibious transport ships (LPDs). MSMO contracts provide for maintenance, modernization and repair to all ships of a class in specific homeport areas.
Metro Machine Corp. will become part of the shipbuilding and repair operations of General Dynamics NASSCO, a business unit of General Dynamics based in San Diego, Calif. NASSCO, the largest shipbuilding and repair company on the West Coast, is a prime contractor for MSMO contracts for Navy combat and support ships, including FFGs, LSDs, LPDs and amphibious assault (LHA/LHD) ships. The company employs 3,400 people.
"With its Norfolk location, Metro Machine Corp. will extend the reach of NASSCO's ship-repair operations to a key East Coast naval port," said Fred Harris, president of General Dynamics NASSCO.
"This move will enhance General Dynamics' ability to deliver cost-effective maintenance and repair
services to the U.S. Navy, helping the Navy to maximize the life of in-service ships and better serve the ship-repair needs of the entire U.S. fleet."
September 22, 2011
GD to acquire Metro Machine Corp
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