The third largest global aerospace and defence company, BAE Systems, has announced an agreement to acquire MTC Technologies.

BAE Systems, the global aerospace and defence company, is continuing its growth in the US market by announcing its agreement to acquire MTC Technologies in a deal worth around US$450 million (£226m).

This deal includes the assumption of debt and gives $24 per share to those with shares in MTC Technologies, a company that is headquartered in Ohio and specialises in aircraft and defence – most notably providing services to the US Department of Defense – and employs approximately 2,900 people in more than 40 locations.

BAE Systems is the third largest defence company in the world – and the sixth largest in the US. This acquisition of MTC Technologies adds to BAE System’s business growth within the US, which, amongst other announcements made by the company this month [December], includes: the contract win worth over $700m from the US army to reset Bradley Fighting Vehicles on their return from Iraq; and also the receipt of follow-on orders for US army Mine Resistant Ambush Protected (MRAP) vehicles in a deal worth $1.1billion.

The company’s President and Chief Executive Officer, Walt Havenstein, stated that the acquisition would help BAE Systems to “become an even more effective prime contractor and provider of technical solutions and services…[with] a greater capability to meet our customers’ most demanding needs, specifically in the areas of readiness and sustainment.”

Dr Raj Soin, MTC’s Chairman and Chief Executive Officer, commented on the merger agreement: “We are pleased to join forces with such a formidable organisation…I am confident the combination of [both] our organisations will foster even greater employee development and expanded market opportunities.”
 
The acquisition is expected to close in the first half of 2008.