General Dynamics to acquire ship repair division of Earl Industries

FALLS CHURCH, Va. 03 July 2012. General Dynamics (NYSE: GD) has entered an agreement to acquire the ship repair and coatings division of Earl Industries, a privately held East Coast ship repair company that supports the U.S. Navy fleet at shipyards in Norfolk, Va., and Mayport, Fla. The value of the cash transaction, which General Dynamics believes to be accretive to earnings in 2013, has not yet been disclosed. The transaction is subject to closing conditions and is expected to close this summer.

The Earl Industries ship repair and coatings division employs approximately 575 workers in the Norfolk and Mayport areas. Earl Industries conducts operations in Portsmouth, Va.; Mayport, Fla.; and Bremerton, Wash.

Earl Industries has been performing U.S. Navy ship repair and conversions since 1985. It is a prime contractor for nuclear aircraft carrier (CVN) multi-ship, multi-option (MSMO) contracts. MSMO contracts provide for maintenance, modernization and repair to all ships of a class in specific homeport areas. The company also provides maintenance and repair services to frigates and other classes of naval ships.

The ship repair and coatings division of Earl Industries will become part of the shipbuilding, maintenance and repair operations of San Diego-based General Dynamics NASSCO, a provider of ships to the Navy and a producer of Jones Act commercial vessels.