General Dynamics to buy Advanced Technical Products

Looking to reinforce its programs in homeland defense and Defense Department transformation initiatives, General Dynamics Corp. has signed an agreement to acquire Advanced Technical Products Inc., Roswell, Ga., for approximately $250 million, General Dynamics announced May 3.

Under the agreement, General Dynamics of Falls Church, Va., will acquire all 5.89 million outstanding shares of ATP for $33.50 per share. The company would also assume approximately $36.2 million of ATP's net debt and retire approximately $16.2 million in ATP stock options.

Approved by the boards of directors of both companies, the purchase is still subject to shareholder and regulatory approval. General Dynamics expects to close the deal within 60 days.

The company will be folded into general Dynamics' Armament Systems. The combined entity will be named as General Dynamics Armament and Technical Products. It is expected to bring in revenues of $235 million in 2002.

ATP, which employs approximately 1,400 people, manufactures advanced composite-based products for U.S. fighter aircraft and helicopters. The company also produces portable biological and chemical detection systems, tactical deception equipment and mobile shelter systems.

"Although we make different products, our companies serve many of the same customers and have highly complementary technologies," said Linda Hudson, president of General Dynamics Armament Systems.