Follow the moneyGeneral Dynamics acquires explosives disposal specialist
General Dynamics assesses that anti-U.S. militants will increase their activities both at home and against U.S. troops abroad; the company acquires a specialist in demilitarization, incineration, and disposal of munitions, explosives, and explosive wastes
General Dynamics (NYSE: GD) announced yesterday that it has acquired EBV Explosives Environmental Company, a big player in demilitarization, incineration, and disposal of munitions, explosives, and explosive wastes. Terms of the cash transaction have not been disclosed; the acquisition will be accretive to General Dynamics’ earnings in 2010.
The organization will become part of General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics, and will be known as General Dynamics Ordnance and Tactical Systems — Munition Services. It is based outside of Joplin, Missouri, and has approximately 130 employees.
“EBV’s unique capabilities and experience expand our munitions-related portfolio, and strengthen our position as a systems contractor for demilitarization,” said Michael S. Wilson, president of General Dynamics Ordnance and Tactical Systems. “This acquisition is a strategic step in meeting our long-term customer-service objective of providing a broad array of demilitarization and related services.”
Wilson continued, “We acquired EBV because it is a high-performance organization with talented, dedicated, customer-focused employees, and we look forward to welcoming them all to General Dynamics.”
General Dynamics Ordnance and Tactical Systems, headquartered in St. Petersburg, Florida, is a world leader in the manufacture of large-, medium- and small-caliber direct and indirect-fire munitions, shaped charge warheads, and propellants. It also manufactures precision metal components and aerostructures in support of the tactical missile industry.
BusinessWeek writes that “General Dynamics expects the acquisition will boost earnings this year.”
