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On September 1, 2005, DID noted that General Dynamics had just become a second-source prime for small-caliber ammunition to the US military, as a result of the Army’s small-caliber ammunition shortage. This broke Alliance Techsystems’ sole lock on the prime supplier position from its single remaining plant in Lake City, MO. That award may be having ripple effects now, as General Dynamics has just entered a definitive agreement to acquire Canadian ammunition system integrator SNC Technologies Inc., a wholly owned subsidiary of SNC-Lavalin Group Inc., for approximately $275 million (CDN$ 315 million).

SNC Technologies supplies small, medium, and large-caliber ammunition and related products to armed forces and law enforcement agencies in North America. Products include its Simunition line, and customers include Canada and the U.S. Defense Department, as well as Australia, Belgium, Denmark, France, Greece, Holland, Hong Kong, Italy, Jordan, Kuwait, New Zealand, Oman, Singapore, Sweden, Thailand, the Philippines, the United Kingdom and the United Arab Emirates. The company generated USD$ 293 million in revenue in 2005, with EBITDA of approximately USD$ 39.5 million. See GD release for more details.