Published:
The Allied Defense Group Announces Agreement to Sell Global Microwave Systems, Inc. in a $26 Million Transaction
VIENNA, Va., Aug. 20 /PRNewswire-FirstCall/ -- The Allied Defense Group,
Inc. (Amex: ADG) announces it has entered into a definitive agreement to sell
substantially all of the assets of itsCalifornia subsidiary, Global Microwave
Systems, Inc. to a wholly owned subsidiary ofCobham plc, an international
company engaged in the development, delivery and support of advanced aerospace
and defense systems for land, sea and air platforms.
The purchase price is $26 million, subject to a final working capital
adjustment. The closing of the transaction is subject to the satisfaction of
customary closing conditions, including obtaining various consents and
regulatory approvals, which are expected in approximately 30 days.
Major General (Ret) John J. Marcello, President and Chief Executive
Officer of The Allied Defense Group said, "GMS has been an important part of
our Electronic Security business segment. It has shown meaningful growth
since we acquired the business in late 2005. The divestiture of GMS will
allow the Company to reduce debt and focus efforts on its key strengths in the
Ammunition market place. Since late 2007, the Company has been expanding its
market presence in the ammunition services sector and is now pleased to report
backlog of more than $35 million, which is greater than the 2007 revenue for
both of the Company's Electronic Security businesses. ADG is committed to
right-size, restructure and recapitalize to maximize value for all of our
shareholders."
The Allied Defense Group, Inc. was advised by Houlihan Lokey Howard &
Zukin in connection with the transaction.
About The Allied Defense Group, Inc.
The Allied Defense Group, Inc. is a diversified international defense and
security firm which: develops and produces conventional medium caliber
ammunition marketed to defense departments worldwide; and designs, produces
and markets sophisticated microwave security systems. For more Information,
please visit the Company web site: www.allieddefensegroup.com.
Certain statements contained herein are "forward looking" statements as
such term is defined in the Private Securities Litigation Reform Act of 1995.
Because statements include risks and uncertainties, actual results may differ
materially from those expressed or implied and include, but are not limited
to, those discussed in filings by the Company with the Securities and Exchange
Commission.
For More Information, Contact:
Jim Drewitz, Investor Relations
830-669-2466
SOURCE The Allied Defense Group, Inc.
Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze,
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