FALLS CHURCH, Va., 24 Feb. 2006. General Dynamics has entered a definitive agreement to acquire SNC Technologies Inc., a wholly owned subsidiary of SNC-Lavalin Group Inc. of Montreal, Canada, for approximately US$275 million (CAN$315 million). SNC Technologies Inc. is an ammunition system integrator that supplies small-, medium-, and large-caliber ammunition and related products to armed forces and law enforcement agencies in North America and around the world. The company generated US$293 million in revenue in 2005, with EBITDA of approximately US$39.5 million.
The acquisition, which has been approved by the boards of directors of both companies and is subject to Canadian Government approval, as well as other regulatory approvals, will be immediately accretive to General Dynamics. General Dynamics expects the transaction to be completed in the second quarter of 2006.
Charlie Hall, General Dynamics executive vice president for Combat Systems, says, "SNC Technologies is a well-managed, profitable organization that will enable General Dynamics to expand our market to key customer groups in the American, Canadian, and allied defense communities by providing additional high-quality ammunition and related products."
Headquartered in Le Gardeur, Quebec, SNC TEC is a supplier of ammunition used by the Canadian Department of National Defence. It also supplies small-, medium-, and large-caliber ammunition to the U.S. Defense Department, as well as Australia, Belgium, Denmark, France, Greece, Holland, Hong Kong, Italy, Jordan, Kuwait, New Zealand, Oman, Singapore, Sweden, Thailand, the Philippines, the United Kingdom and the United Arab Emirates. The company also produces pyrotechnics, propellants, and explosives for the military; small-caliber training ammunition and related training devices for the military and law enforcement markets.
(Currency conversions were calculated at the Feb. 22, 2006, rate of US$0.87 to CAN $1.)