Dynamics Research to buy HJ Ford Associates

Dynamics Research Corp. of Andover, Mass., announced May 29 that it would acquire privately held HJ Ford Associates Inc., a Washington-based provider of engineering and information technology services to the public sector.

Dynamics Research said it would pay about $10 million in cash for HJ Ford, which will become a wholly owned subsidiary of DRC. HJ Ford's current team will continue to manage the subsidiary. Don Alducin, HJ Ford founder, president and chief executive officer, will remain with the organization as a consultant, Dynamics Research said.

Dynamics Research, which delivers engineering, logistics and information technology services and precision manufactured products for mission critical systems, has worked with HJ Ford for 10 years. The purchase of HJ Ford will enable Dynamics Research to expand in key markets, said James Regan, DRC chairman and chief executive officer.

"Strengthened relationships with mutual clients, including the Navy and Air Force, are expected to lead to new business opportunities with HJ Ford clients in strategic markets," Regan said.

In particular, the addition of HJ Ford's technical professional services significantly expands DRC's presence with the Air Force Aeronautical Systems Command at Wright-Patterson Air Force Base in Dayton, Ohio, Regan said.

Based on a target closing date of May 31, DRC said it expects the acquisition to add an estimated $16 million to its 2002 revenue. Most of HJ Ford's revenue comes through General Services Administration contracts, Dynamics Research said.

The Windsor Group acted as a financial advisor to HJ Ford. HJ Ford was founded in 1981 to provide industrial engineering consulting services to the aerospace industry. The company received its first government contract in 1988 in support of the unmanned aerial vehicle program, a program it continues to support today. For the year ended Dec. 31, 2001, HJ Ford recorded revenue of $38.4 million and earnings before interest, taxes, depreciation and amortization of $1.3 million. The company has approximately 150 employees and offices in Washington, Dayton, Ohio, Mechanicsburg, Pa., and Paxtuxent River, Md.

Dynamics Research had revenue of $201.1 million and earnings of $6.5 million for the year ended Dec. 31, 2001. Its clients include the Department of Defense, the IRS and the states of Colorado and Ohio. The company has about 1,500 employees at offices nationwide.