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GenCorp's Aerojet Subsidiary Completes Acquisition Of Atlantic Research Propulsion
GenCorp Inc.
(NYSE: GY) announced today that its subsidiary, Aerojet-General Corporation
(Aerojet), has completed the acquisition of substantially all of the assets
related to the propulsion business of Atlantic Research Corporation (ARC), a
subsidiary of Sequa Corporation
GenCorp's agreement to acquire
ARC's propulsion business was announced in a press release on May 5, 2003.
Aerojet has also entered into a long-term agreement to provide propellant to
ARC Automotive, Sequa's airbag inflator operation. The airbag inflator
business is not included in the sale to Aerojet.
ARC is a leading developer and manufacturer of advanced solid rocket
propulsion systems, gas generators and auxiliary rocket motors for both space
and defense applications.
The Federal Trade Commission (FTC) approved the transaction on
October 16, 2003 under the Hart-Scott-Rodino Antitrust Improvement Act of
1976, as amended. The $133 million cash purchase was funded from the proceeds
of a senior subordinated notes offering completed in August 2003.
With the acquisition, Aerojet becomes the second leading provider in the
$1.3 billion domestic solid propulsion marketplace and a market leader in the
tactical missile propulsion segment of that market.
Headquartered and with operations in Gainesville, Virginia, ARC's
propulsion and defense business also has facilities in Orange County,
Virginia; Camden, Arkansas; Vernon, California; Clearfield, Utah; Niagara,
New York; and the United Kingdom. As a condition to the FTC's approval of the
acquisition, Aerojet will be divesting the former ARC in-space propulsion
business operated out of the facilities located in New York and the
United Kingdom. The remaining locations, with approximately 900 employees,
will operate as integrated components of Aerojet.
Aerojet, headquartered in Sacramento, California, is a world-recognized
aerospace and defense leader principally serving the missile and space
propulsion, and defense and armaments markets. GenCorp Inc. is a
technology-based manufacturer with operations in the aerospace and defense,
pharmaceutical fine chemicals and automotive industries. For more
information, please visit http://www.aerojet.com and http://www.GenCorp.com.
Sequa Corporation is a diversified manufacturer with eight discrete
business units organized around five operating segments: aerospace,
automotive, metal coating, specialty chemicals, and other products. For more
information, please visit http://www.sequa.com.
This press release contains "forward-looking statements" as that term is
defined in the U.S. Private Securities Litigation Reform Act of 1995. No
forward-looking statement can be guaranteed, and actual results may differ
materially from those projected depending on factors such as business climate,
economic and competitive uncertainties, adverse legal and regulatory
developments, and adverse changes in economic and political climates around
the world. Forward-looking statements in this document should be evaluated
together with the many factors that affect GenCorp's business as described in
more detail in GenCorp's Form 10-K for the year ended November 30, 2002, and
GenCorp's subsequent and other periodic filings with the Securities and
Exchange Commission.
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