Northrop Grumman Acquires Essex Corp.
Northrop Grumman Corporation recently announced that it will acquire all of the outstanding shares of Essex Corporation for $24 per common share in cash. This gives the transaction a value of about $580 million, including the assumption of Essex’s debt.
Essex Corp’s focus areas include signal processing, information assurance, optics and optical processing, and systems engineering and integration. Their own release had a different focus, and stressed the firm’s rapid growth from 2000 to 2006…
Essex Corp.’s release stressed the growth of the firm from under 50 people and a value of under $20 million in 2000 to a company of over 1,000 employees and revenues around $300-350 million forecast for 2007, while undertaking 5 acquisitions and 2 follow-on primary public offerings.
After the acquisition is complete, including regulatory approval under Hart-Scott-Rodino and the vote of Essex Corporation’s shareholders, the firm will operate as a business unit within Northrop Grumman’s Mission Systems sector. Northrop Grumman expects the transaction to close in the first quarter of 2007 and expects the transaction to be neutral to 2007 earnings and accretive beginning in 2008.
Citigroup Global Markets Inc. acted as financial advisor to Northrop Grumman in this transaction, while Jefferies & Company, Inc. division Jefferies Quarterdeck, and Hogan & Hartson LLP acted as Essex’ financial and legal counsel, respectively.