NEW YORK CITY, 27 September 2006/ EDO Corporation has 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 (DOD).
"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," says EDO CEO James M. Smith.
CAS provides system engineering and analysis support for theater missile 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 service provider based in Huntsville, Ala., with 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.
The combined operation 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.
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.
