27 Aug 12. General Dynamics (NYSE: GD) has acquired the defense operations of Gayston Corporation, a privately held company that supplies precision metal components used in several munitions programs. The value of the cash transaction, which General Dynamics expects to be accretive to earnings in 2013, has not been disclosed. Gayston’s defense operations employ 187 people at a state-of-the-art facility in Springboro, Ohio, which is optimized for aluminum impact extrusion manufacturing. Among its products, Gayston manufactures rocket motor tubes for the U.S. Army’s Hydra-70 air-to-ground rocket program. It also provides liners and cartridges for 40mm ammunition rounds and components for 60-120mm mortar rounds to a variety of customers. The defense operations of Gayston will become part of Charlotte, N.C.-based General Dynamics Armament and Technical Products, a leading provider of high-performance weapon and armament systems, composite products and heavy-duty off-road axle and suspension systems to the U.S. military, allied forces and commercial customers.
17 Aug 12. Russian T-90 maker to expand ahead of 2014 privatisation. Uralvagonzavod (UVZ) – the monolithic Russian holding group behind the T-90 main battle tank – will see its portfolio of defence companies expanded ahead of a 2014 partial privatisation, although the military industries within the group are likely to split from the civilian engineering holdings. (Source: Jane’s, JDW)
17 Aug 12. Indian healthcare group takes stake in Israeli UAV company. Indian group Piramal Enterprises, which is based in Mumbai and has traditionally focused on the healthcare sector, has acquired a 28 per cent stake in Bluebird Aero Systems, an Israeli manufacturer of unmanned aerial vehicles (UAVs) for military and civilian applications. The investment, which was disclosed in Piramal Enterprises’ quarterly report issued to the Bombay Stock Exchange on 14 August, is valued at INR400m (USD7.1m). (Source: Jane’s, JDW)
22 Aug 12. Moog Inc. (NYSE: MOG.A) (NYSE: MOG.B) has acquired Tritech International Limited. The purchase price is approximately £21m in cash. Tritech, founded in 1991, is a leading designer and manufacturer of high performance acoustic sensors, sonars, video cameras and mechanical tooling equipment. The company had trailing 12 month revenues of $19m.
Tritech, located in Aberdeenshire, Scotland, is an industry leader known for supplying equipment for the ROV (Remotely Operated Vehicle) and AUV (Autonomous Underwater Vehicle) markets. This acquisition will be reported as part of the Components Group. Moog Components Group supplies motion and fiber optic products and solutions to marine, medical, industrial, aerospace and defense applications. Sales for Tritech are expected to add approximately $2m to Moog’s sales for the remainder of the Company’s 2012 fiscal year, ending September 29, 2012, and $20m in sales for fiscal year 2013. This acquisition is expected to be neutral to Moog’s earnings per share for fiscal years 2012 and 2013 due to first year purchase accounting adjustments.
29 Aug 12. US budget cuts squeeze Serco’s profits. US government budget cuts and reorganisation costs have dragged down first-half underlying profits at Serco Group, in spite of the FTSE 100 outsourcing group
reporting a jump in contract wins. Serco, which runs air traffic control centres, nuclear facilities and prisons, on Wednesday reported a 14 per cent year-on-year fall in revenues at its US division to £351.5m, as the looming US elections affected government spending. The group’s US division provides human resources, logistics and cyber support to the US military, and has struggled under the weight of budget delays and austerity measures to air force, army and navy contracts. Although conditions were similarly weak in the UK – where first-half revenues fell 1.2 per cent year on year to £1.28bn – the group pushed up total turnover 4.3 per cent to £2.34bn thanks to a solid performan