FALLS CHURCH, Va. --- General Dynamics today entered a definitive agreement to acquire SNC Technologies Inc., a wholly owned subsidiary of SNC-Lavalin Group Inc. (TSX: SNC) of Montreal, Quebec, for approximately US$275 million (CAN$315 million).
SNC Technologies Inc. (“SNC TEC”) is an ammunition system integrator that supplies small-, medium- and large-caliber ammunition and related products to armed forces and law enforcement agencies in North America and around the world. The company generated US$293 million in revenue in 2005, with EBITDA of approximately US$39.5 million.
The acquisition, which has been approved by the boards of directors of both companies and is subject to Canadian Government approval, as well as other regulatory approvals, will be immediately accretive to General Dynamics. General Dynamics expects the transaction to be completed in the second quarter of 2006.
Charlie Hall, General Dynamics executive vice president for Combat Systems, said, “SNC Technologies is a well-managed, profitable organization that will enable General Dynamics to expand our market to key customer groups in the American, Canadian and allied defense communities by providing additional high-quality ammunition and related products.”
Headquartered in Le Gardeur, Quebec, SNC TEC is a main supplier of ammunition used by the Canadian Department of National Defence. It also supplies small-, medium- and large-caliber ammunition to the U.S. Defense Department, as well as Australia, Belgium, Denmark, France, Greece, Holland, Hong Kong, Italy, Jordan, Kuwait, New Zealand, Oman, Singapore, Sweden, Thailand, the Philippines, the United Kingdom and the United Arab Emirates. The company also produces pyrotechnics, propellants and explosives for the military; small-caliber training ammunition and related training devices for the military and law enforcement markets. SNC TEC is a member of the North American Technology Industrial Base (NTIB).
SNC TEC employs approximately 1,600 workers at sites near Montreal and Quebec City, Valleyfield and Nicolet, Quebec, as well as Avon, Conn.; Mt. Arlington, N.J.; and Crane Naval Surface Warfare Center, Ind. It 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 propellant. The company also manufactures precision metal components; provides explosive load, assemble and pack services for a variety of munitions, tactical missile and rocket programs; and designs and produces shaped charge warheads and control actuator systems.
General Dynamics, headquartered in Falls Church, Virginia, 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.
NOTE: Currency conversions were calculated at the Feb. 22, 2006, rate of US$0.87 to CAN $1.00.