FALLS CHURCH, Va., 8 Jan. 2007.General Dynamics has completed its acquisition of SNC Technologies Inc., a wholly owned subsidiary of SNC-Lavalin Group Inc. of Montreal, Quebec, for approximately $275 million.
SNC Technologies Inc. is an ammunition system integrator that supplies small-, medium-, and large-caliber ammunition and related products to the Canadian Forces, other national defense customers, and law-enforcement agencies around the world.
The acquisition, which was approved by the governments of Canada and the United States, will be immediately accretive to General Dynamics. Plans for the acquisition were announced on February 23, 2006.
In seeking Canadian government approval of the acquisition, General Dynamics entered an agreement with the Minister of Public Works and Government Services Canada that establishes the company's commitment to helping to ensure Canada's ability to develop and manufacture ammunition within its own borders; to continue assigning the highest priority to meeting the Canadian Forces' ammunition and explosives requirements, now and in the future; and to strengthening the organization's research and development capability in Canada.
The agreement also provides for the maintenance of SNC TEC's facilities within their current provincial borders; utilization of Canadian skills, services, materials, and knowledge to the maximum extent possible; and the establishment of an ongoing consultative mechanism with the Government of Canada to ensure that the SNC TEC organization continues to meet Canada's ammunition requirements and objectives over time.
SNC TEC employs approximately 1,600 workers at sites near Montreal and Quebec City, Valleyfield, and Nicolet, Quebec. It will become part of the General Dynamics Ordnance and Tactical Systems business unit, which manufactures large- and medium-caliber direct and indirect- fire munitions, bomb bodies, and Ball Powder propellant.
