General Atomics (GA) on Feb. 25 said it has agreed to acquire the Miltec Corporation subsidiary from Ducommun Inc. [DCO], adding technical expertise in missile and aerospace systems and giving it an established presence in Huntsville, Ala., home of a number of United States space and defense activities.
Ducommun said that GA is buying Miltec for $14.6 million in cash. Miltec had about $28.2 million in sales in 2015, Ducommun said.
GA said that Miltec will become part of its Electromagnetic Systems Group and that the acquisition is part of its strategic plan to bolster its expertise in technical areas of guided missiles, hypersonic vehicles, small electronics and small satellites.
“Together we will leverage our specialized skill sets to extend our capabilities and advance GA’s position with a strong portfolio in missile defense and related products and programs,” Scott Forney, president of GA’s Electromagnetic Systems Group, said in a statement. He also said the acquisition “allows us to work closely with key Huntsville-based military, agencies and industry to develop advanced technologies for the U.S. Department of Defense and other government customers.”
The Army Materiel Command, Aviation and Missile Command, the Missile Defense Agency, and NASA’s Marshall Space Flight Center are located in Huntsville.
Ducommun said it is divesting Miltec because it a non-core engineering services business. The transaction is expected to close within 30 days.
Miltec provides engineering, technical and program management services to Defense Department and intelligence community customers for advanced weapon systems and military defense systems.
Ducommun’s financial adviser on the deal is KippsDeSanto & Co.