In Decemner 2006, Nammo AS of Raufoss, Norway and Talley Defense Systems of Mesa, AZ signed an agreement whereby Nammo will acquire 100% of Talley. The acquisition is in effect as of January 1, 2007, closing is expected in Q1 Quarter 2007 pending final U.S. Government regulatory approval. The firms’ mutual business relationship has spanned over 25 years, with a focus on cooperative development, production and marketing of shoulder-launched weapon systems in particular.
Talley makes the M72 LAW weapon that is being reintroduced into US service, and also makes the heavier Mk153 SMAW for the US Marine Corps. Talley has 220 employees, and 2005 revenue was $62.6 million. The Nammo Group has subsidiaries in Finland, Germany, Norway, Sweden, Switzerland and the USA, and DID has covered Finnish firm Patria Oyj’s buy-in to the group. In 2005, their revenues reached $240 million equivalent, with around 1,200 employees. With 25% of NAMMO’s sales already in North America (specialties include armor-piercing bullets and air-burst munitions), the Talley acquisition looks set to strengthen their US position, even as it fills in NAMMO’s artillery shell product range and more fully leverages its missile component capabilities via the shoulder-fired weapon sector.
Small business qualifier Harry Pepper and Associates, Inc. in Jacksonville, FL received a $13 million contract for firm-fixed price Task Order 0005 under a previously awarded indefinite-delivery/ indefinite-quantity multiple award construction contract. Work to be done involves design and construction of a Joint Aquatic Combat Diver Training Facility at Naval Support Activity Panama City, FL.
Work is expected to be completed by September 2008. The Naval Facilities Engineering Command Southeast in North Charleston, SC issued the contract (N62467-03-D-0188).
Raytheon recently announced that Raytheon Company announced today that it has signed a definitive agreement to sell its wholly owned subsidiary Raytheon Aircraft Company (RAC) to GS Capital Partners, an affiliate of Goldman Sachs, and Onex Partners. RAC makes light civilian aircraft and business jets, including some specialized versions with military utility; nevertheless, the Raytheon release noted that RAC was seen as outside the firm’s desired core focus on the government and defense sector.
The firm has more than 8,500 employees and has approximately 100 authorized service centers worldwide, and will be sold for approximately $3.3 billion; expected net after-tax proceeds to Raytheon would be approximately $2.5 billion. The sale, which is subject to customary conditions and regulatory approvals, is expected to close in the first half of 2007.
Raytheon’s plans for those funds are surprisingly modest…
Comtech Mobile Datacom Corp. in Germantown, MD received a $20.1 million cost-plus-fixed-fee and firm-fixed-price contract for the continued operation of the Force XXI Battle Command Brigade and Below Blue Force Tracking Network Operations Center. Work will be performed in Germantown, MD and is expected to be complete by Dec. 31, 2007. This was a sole source contract initiated on Nov. 29, 2006 by the U.S. Army Communications-Electronics Command in Fort Monmouth, NJ (W15P7T-07-C-J408).
Rogers-Quinn (RQ) Construction, Inc. in Bonsall, CA received $19.8 million for firm-fixed-price Task Order 0008 under a previously awarded indefinite-delivery/ indefinite-quantity multiple award construction contract (N68711-02-D-8062) for design and construction of the Special Operations Force Seal Team Operations Support Facility at Naval Amphibious Base Coronado, CA. Work is expected to be complete by January 2009. The Naval Facilities Engineering Command Southwest in San Diego, CA issued the contract.