HUNT VALLEY, Md., 4 April 2005. United Industrial Corp. announced today that its wholly-owned subsidiary AAI Corp. completed the acquisition of ESL Defence Limited (ESL), an electronic warfare (EW) systems company based in the United Kingdom, on April 4, 2005.
The purchase price was approximately $10 million in cash.
Headquartered in Hamble, England, ESL is a world market leader in the design and production of electro-optic (EO) test and simulation products for use on flight lines and in aircraft maintenance facilities. The simulators are used to assess the operational readiness of sophisticated missile warning and countermeasures self-protection systems used on military aircraft. ESL's EO simulators are also used at military test, evaluation, and training ranges to evaluate the effectiveness of new self-protection systems and to train pilots for combat readiness.
In addition, ESL specializes in EW related research, study, and in-service support activity for U.K. government agencies and prime contractors both in the United Kingdom and in the United States.
ESL's EO test and training products have grown during the past year due to the accelerating use of EO defensive systems to protect aircraft from man-portable missile threats. The strong demand is expected to continue and should result in continued business growth. ESL is expected to generate approximately $7 million in sales during the remainder of 2005 and be accretive to UIC's results of operations.
"The ESL product line complements AAI's EW test and training products," said Frederick M. Strader, president and chief executive officer of UIC and AAI.
"The integration of AAI's highly successful EW test and training products with ESL's flight line test systems will allow us to broaden our sales distribution channels internationally and offer our customers a full range of support equipment to test the complete complement of EW sensors on military aircraft. We are very pleased to welcome ESL's management and employees to the AAI team. Our goal is to grow and expand the leadership position of the ESL and AAI electronic warfare support equipment product lines worldwide."
United Industrial Corporation designs, produces, and supports defense systems. Its products and services include unmanned aerial vehicle systems, training and simulation systems, automated aircraft test and maintenance equipment, armament systems, logistical and engineering services, and other leading-edge technology solutions for defense needs. The company also manufactures combustion equipment for biomass and refuse fuels. For more information, see www.unitedindustrial.com, or www.aaicorp.com, or www.esldefence.co.uk.
