OCTOBER 23, 2008--Finmeccanica S.p.A. (Milan, Italy; www.finmeccanica.com), an industrial group operating globally in the aerospace, defense, and security sectors, has announced it has successfully completed its acquisition of DRS Technologies, Inc. (Parsippany, NJ, USA; www.drs.com), a supplier of integrated defense electronics products, services, and support. The acquisition received all the required regulatory approvals as well as the approval of DRS shareholders.
Finmeccanica purchased all outstanding shares of DRS for US$81 per share in cash. The enterprise value of the transaction is US$5.2 billion, including the assumption of approximately US$1.6 billion in outstanding indebtedness (including the convertible notes). DRS will be known as DRS Technologies, a Finmeccanica Company.
Pier Francesco Guarguaglini, chairman and CEO of Finmeccanica, says, "The acquisition of DRS further solidifies our position as a top-tier international competitor and reinforces our commitment to the U.S. market, industrial base and, most importantly, the American armed forces, establishing a strong transatlantic Defense Electronics capability."
DRS will operate as a U.S. subsidiary of Finmeccanica under agreements with the U.S. Department of Defense, including a plan to mitigate foreign ownership control and influence (FOCI).