21 Sep 11. General Dynamics has entered an agreement to acquire Metro Machine 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. 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.
22 Sep 11. CACI International Inc (NYSE: CACI) has signed a definitive agreement to acquire Advanced Programs Group, LLC, an Oracle Platinum Partner and leading provider of Oracle e-Business services in the federal market. This acquisition expands CACI’s already strong presence in the business and government transformation arenas. Closing is anticipated by October 1, 2011. Founded in 2004, Advanced Programs Group (APG) has 110 employees and is headquartered in Reston, Virginia. The company’s services include Oracle e-Business Suite (EBS) implementations, IT program management, enterprise architecture, and security services. APG manages the entire lifecycle of an Oracle implementation – including the design, configuration, testing, deployment, maintenance, and enhancement phases – and is one of the only companies to successfully upgrade federal clients to the latest Oracle EBS release. APG’s Oracle solutions are critical to their clients’ mission success and provide benefits such as transparency into financials and efficiency in managing taxpayer dollars. Ultimately, Oracle’s EBS systems allow federal agencies to make good spending decisions, ensuring a better use of funds in this limited budget environment. APG has contract vehicles with several key civilian and Department of Defense clients, including the National Institutes of Health (NIH) and the Department of the Interior’s (DOI) National Business Center (NBC), a shared service center that provides financial systems for multiple government agencies. APG’s revenue in calendar year 2010 was $41.9m. The acquisition is expected to be accretive to CACI’s earnings per share during its first 12 months. (Source: Yahoo!/BUSINESS WIRE)
23 Sep 11. The Indian government has decided to sell 10 percent of its stake in Hindustan Aeronautics Ltd. (HAL). With the proposed 10 percent equity sale, HAL shares will be listed on the Indian stock markets for the first time. The listing of HAL will not affect ownership, as the Indian government still will hold nearly 90 percent of the shares. But the board of directors would gain members from outside the government and bureaucracy. The partial stake sale of HAL is likely to be increased in coming years, but the government is unlikely to shed its control, a Defence Ministry official said. Currently, the other state-owned defense units whose shares had been sold to the public include Bharat Electronics and Bharat Earth Movers. HAL has annual sales of about $3bn and orders worth $10bn in hand. HAL’s hands are full as the license producer of the Russian Sukhoi, the British Hawk and the selected multirole fighter.