Northrop Grumman, SAIC restructure Amsec joint venture

Northrop Grumman Corp. and Science Applications International Corp. have unveiled a restructuring plan for Amsec LLC, their joint venture that provides engineering, logistics and technical support primarily to Navy ship and aviation programs.

The plan will divide the company along customer and product lines, according to the companies.

The companies created Amsec as a joint venture in 1999. It has since grown from $100 million in revenue in 2000 to approximately $500 million in fiscal 2007, which ended January 2007.

Under the restructuring, Northrop Grumman's Newport News, Va., sector will retain the ship engineering, logistics and technical services businesses under the Amsec name.

SAIC will assume Amsec's aviation, combat systems and strike force integration services, including Amsec subsidiary Eagan, McAllister Associates Inc., a command, control, communications, computers, intelligence, surveillance and reconnaissance, information technology and naval aviation support firm. It will become a wholly owned subsidiary of SAIC integrated within its Defense Solutions Group.

In addition, SAIC will receive Amsec's Strike Force Systems and Integration Division, which provides combat systems ? including the Navy's Aegis guided missile system ? integration, training and engineering support to major Navy customers. The division will also be integrated into SAIC's Defense Solutions Group.

Following completion of the restructuring, Amsec will operate as a separate business unit of Northrop Grumman's Newport News sector, headed by Irwin Edenzon, vice president of technology development and fleet support.

Northrop Grumman said the restructuring, which is expected to be completed in mid-July, will not affect its financial results.

Northrop Grumman of Los Angeles has 122,000 employees and had annual sales of $30 billion in 2006. The company No. 3 on Washington Technology's 2007 Top 100 list of the largest federal government prime contractors.