LOS ANGELES --- Northrop Grumman Corporation announced today that it has agreed to acquire Ryan Aeronautical, an operating company of Allegheny Teledyne Incorporated, for $140 million in cash. Ryan Aeronautical's current business is primarily in the unmanned air vehicle (UAV) area. Ryan Aeronautical is a world leader in the design, development and manufacturing of unmanned airborne reconnaissance, surveillance, deception and target systems for the Department of Defense and international military customers. The company had 1998 sales of approximately $100 million in the UAV business area. "The acquisition of Ryan Aeronautical is an excellent strategic fit with many of Northrop Grumman's business areas and strengthens our surveillance and precision strike capabilities,'' said Kent Kresa, Northrop Grumman chairman, president and chief executive officer. "Ryan is recognized by its customers as an innovative, agile engineering company that is highly competitive in the unmanned air vehicle business.'' Robert A.K. Mitchell, president of Ryan Aeronautical, said, "We're very excited to be joining a world-class aerospace and defense company where our employees can thrive and our technologies will impact some truly revolutionary programs.'' The transaction is subject to normal government reviews and is expected to close in the third quarter of 1999. Upon completion of the transaction, Ryan will become an operating element of Northrop Grumman's Integrated Systems and Aerostructures Sector, in its Air Combat Systems business unit. Ryan's facilities are not included in the transaction, however it is anticipated that its current operations will remain in the San Diego area and move to another facility within a year. The company has approximately 300 employees. Ryan is well positioned in the high-end UAV market with demonstrated products like Global Hawk and the Miniature Air Launched Decoy (MALD). Global Hawk is an advanced flight demonstration program managed by the U.S. Air Force, to field an integrated UAV system for reconnaissance and surveillance. Global Hawk is designed to loiter at altitudes of about 65,000 feet for 24 hours or more while several thousand miles from its base, using various onboard sensors to collect and then transmit high quality imagery and other data by satellite to ground terminals. Global Hawk complements other airborne and space-based surveillance systems presently in inventory and those being planned. Currently in development under contract to the Defense Advanced Research Projects Agency (DARPA) and the Air Force, MALD is a small, cost-effective UAV designed to be launched from fighters as a decoy that appears on hostile air defense systems as a full-sized U.S. military aircraft. Variants of MALD also may be considered for use in electronic warfare, reconnaissance, ground attack, air-to-air intercept and as an aerial target vehicle. Ryan also produces the Firebee target system for the U.S. Air Force, Navy and international customers. Northrop Grumman Corporation, headquartered in Los Angeles, is a leading designer, systems integrator and manufacturer of military surveillance and combat aircraft, defense electronics and systems, airspace management systems, information systems, marine systems, precision weapons, space systems, and commercial and military aerostructures.
