DRS Acquires Eaton Navy Controls Div.

PARSIPPANY, N.J., July 17 -- DRS Technologies Inc. said it has completed the acquisition of the assets and certain liabilities of the Navy Controls Div. of Eaton Corp.

Renamed DRS Power & Control Technologies, the new company unit is expected to generate approximately $90 million in annual revenues and $0.20 in diluted earnings per share in its first 12 months of operation under DRS ownership. For the rest of fiscal 2003, ending March 31, 2003, the business is expected to contribute $60 million to DRS's sales and $0.12 to diluted earnings per share.

The addition of this unit to DRS's Electronic Systems Group strongly complements the company's presence in Naval advanced command and control computer display and other ship systems, DRS said.

DRS Power & Control Technologies, located in Milwaukee, Wisc., and Danbury, Conn., is a supplier of high-performance power conversion and instrumentation and control systems for the Navy’s combatant fleet, including nuclear-powered and conventionally-powered ships, in addition to specialized industrial customers. The new unit, which employs over 600, is expected to benefit from the Navy’s backfit, transformational conversion and modernization initiatives, as well as from new ship installation. Products include ship electric propulsion equipment, power electronics equipment, high-performance networks, shipboard control equipment and control panels, tactical displays and specialty reactor plant instrumentation and control equipment.