L-3 to Acquire Propulsion Systems Unit for $155 M

NEW YORK, Dec. 2 -- L-3 Communications announced it has agreed to acquire the Propulsion Systems business unit of General Dynamics for $185 million in cash. Propulsion Systems is expected to add approximately $155 million to L-3's sales in 2005 and be accretive to L-3's results of operations. The acquisition is expected to be completed in the first quarter of 2005.

Based in Muskegon, Mich., Propulsion Systems is involved in the engineering, design and manufacture of engines, transmissions, suspension and turret drive systems for combat vehicles. The business is also a production center for Abrams tank components. Propulsion Systems supports both domestic and international vehicle customers, including programs for Singapore and South Korea.

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