EDO Completes Acquisition of CAS Inc; Triples Revenue from Professional and Engineering Services.NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- EDO Corporation EDO Corporation (NYSE: EDO) is an American company that designs and manufactures products for defense, intelligence, and commercial markets, and provides related engineering and professional services. It employs 4,000 people worldwide and had revenues of $715 million in 2006. (NYSE NYSE
See: New York Stock Exchange : EDO Edo: see Tokyo, Japan. ) today completed the acquisition of CAS Inc, a privately-held company that provides engineering services, logistics support, and weapons-systems analysis to the Department of Defense.
The previously announced purchase price of $175.6 million was funded from EDO's current cash balance, plus a $100 million borrowing from the company's bank-credit facility, and 214,574 shares of restricted common shares. The acquisition will be immediately accretive to EDO's earnings.
"With the acquisition of CAS, we are tripling the size of our professional and engineering services business and substantially increasing our scope of work with the Army," said EDO Chief Executive Officer James M. Smith.
"We are adding an excellent, well-respected work force and management team, with a shared commitment to excellence. Like EDO, CAS has products and services that are highly engineering driven, and will greatly strengthen our position in strategically important markets."
For example, CAS provides system engineering and analysis support for theater missile A missile, which may be a ballistic missile, a cruise missile, or an air-to-surface missile (not including short-range, non-nuclear, direct fire missiles, bombs, or rockets such as Maverick or wire-guided missiles), whose target is within a given theater of operation. Also called TM. defense, air defense, aviation, and land-combat missile systems, such as the PATRIOT missile program. The current PATRIOT support contract, valued at $377 million, was awarded in October 2003 and extends until October 2008.
CAS is a premier full service provider based in Huntsville, Ala., a growing center for the missile-defense, aviation, and logistics programs of its largest customer, the United States Army United States Army
Major branch of the U.S. military forces, charged with preserving peace and security and defending the nation. The first regular U.S. fighting force, the Continental Army, was organized by the Continental Congress on June 14, 1775, to supplement local . It has approximately 1,000 employees operating in 13 states, as well as on military bases worldwide. Revenue for the 12 months ended March 31, 2006 was $184.3 million. Revenue has grown steadily since the company's founding in 1979, with annual growth averaging more than 18 percent over the past five fiscal years.
"We expect the CAS team to play a major role along side our current Professional and Engineering Services team in executing our combined professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. operational strategy," continued Smith. The combined operation Noun 1. combined operation - a military operation carried out cooperatively by two or more allied nations or a military operation carried out by coordination of sea, land, and air forces will be headed by Charles Vaughn, who has been president of the Tactical Systems Group at CAS. The company will become part of EDO's Engineered Systems and Services reporting segment.
About EDO Corporation
EDO Corporation designs and manufactures a diverse range of products for defense, intelligence, and commercial markets. Major product groups include: Professional and Engineering Services, Defense Electronics, Communications, Aircraft Armament Systems, Undersea Warfare Operations conducted to establish battlespace dominance in the underwater environment, which permits friendly forces to accomplish the full range of potential missions and denies an opposing force the effective use of underwater systems and weapons. , and Integrated Composite Structures. EDO's advanced systems are at the core of the transformation to lighter, faster, and smarter defense capabilities.
With headquarters in New York, EDO Corporation (www.edocorp.com) employs 4,000 people worldwide. The company was founded in 1925 and had revenues of $648 million in 2005.
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