<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
DRS TECHNOLOGIES, INC.
---------------------------
(Name of Issuer)
Common Stock, par value $0.01 per share
-----------------------------------------------------
(Title of Class of Securities)
------------------
23330X100
(CUSIP Number)
Robert B. McKeon
Veritas Capital Management, L.L.C.
660 Madison Avenue
New York, NY 10021
Telephone: (212) 688-0020
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copy to:
Benjamin M. Polk, Esq.
Winston & Strawn
200 Park Avenue
New York, NY 10166
(212) 294-6700
October 12, 2000
---------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check
the following box. [ ]
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 240.13d-7 for other
parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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Page 2 of 14 Pages
SCHEDULE 13D
CUSIP NO. 23330X100
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1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
THE VERITAS CAPITAL FUND, L.P.
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
--------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7. SOLE VOTING POWER
NUMBER OF 1,728,900
SHARES --------------------------------------------
BENEFICIALLY 8. SHARED VOTING POWER
OWNED BY 0
EACH --------------------------------------------
REPORTING 9. SOLE DISPOSITIVE POWER
PERSON 1,728,900
WITH --------------------------------------------
10. SHARED DISPOSITIVE POWER
0
--------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,728,900
--------------------------------------------------------------------------------
12. CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [ ]
--------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.6%
--------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
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Page 3 of 14 Pages
SCHEDULE 13D
CUSIP NO. 23330X100
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15. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
VERITAS CAPITAL MANAGEMENT, L.L.C.
--------------------------------------------------------------------------------
16. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
17. SEC USE ONLY
--------------------------------------------------------------------------------
18. SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
--------------------------------------------------------------------------------
19. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
20. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
NUMBER OF 21. SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------
OWNED BY 22. SHARED VOTING POWER
EACH 1,728,900
REPORTING --------------------------------------------
PERSON 23. SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------
24. SHARED DISPOSITIVE POWER
1,728,900
--------------------------------------------------------------------------------
25. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,728,900
--------------------------------------------------------------------------------
26. CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [ ]
--------------------------------------------------------------------------------
27. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.6%
--------------------------------------------------------------------------------
28. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
OO
--------------------------------------------------------------------------------
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Page 4 of 14 Pages
SCHEDULE 13D
CUSIP NO. 23330X100
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1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ROBERT B. McKEON
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
--------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7. SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------
OWNED BY 8. SHARED VOTING POWER
EACH 1,728,900
REPORTING --------------------------------------------
PERSON 9. SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------
10. SHARED DISPOSITIVE POWER
1,728,900
--------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,728,900
--------------------------------------------------------------------------------
12. CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [ ]
--------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.6%
--------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------------------------------------------------------------------------------
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Page 5 of 14 Pages
SCHEDULE 13D
CUSIP NO. 23330X100
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1. NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
THOMAS J. CAMPBELL
--------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
--------------------------------------------------------------------------------
3. SEC USE ONLY
--------------------------------------------------------------------------------
4. SOURCE OF FUNDS (SEE INSTRUCTIONS)
AF
--------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
--------------------------------------------------------------------------------
NUMBER OF 7. SOLE VOTING POWER
SHARES 0
BENEFICIALLY --------------------------------------------
OWNED BY 8. SHARED VOTING POWER
EACH 1,728,900
REPORTING --------------------------------------------
PERSON 9. SOLE DISPOSITIVE POWER
WITH 0
--------------------------------------------
10. SHARED DISPOSITIVE POWER
1,728,900
--------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,728,900
--------------------------------------------------------------------------------
12. CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
(SEE INSTRUCTIONS) [ ]
--------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
18.6%
--------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
--------------------------------------------------------------------------------
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Page 6 of 14 Pages
SCHEDULE 13D
CUSIP NO. 23330X100
ITEM 1. SECURITY AND ISSUER.
The title of the class of equity securities to which this statement
on Schedule 13D (this "Statement") relates is common stock, par value
$0.01 per share (the "Common Stock"), of DRS Technologies, Inc., a
Delaware corporation (the "Company"). The principal executive offices
of the Company are located at 5 Sylvan Way, Parsippany, New Jersey
07054.
ITEM 2. IDENTITY AND BACKGROUND.
This Statement is being filed jointly by The Veritas Capital Fund,
L.P., a Delaware limited partnership ("Veritas Capital"), Veritas
Capital Management, L.L.C., a Delaware limited liability company
("Veritas"), Mr. Robert B. McKeon and Mr. Thomas J. Campbell
(collectively, the "Reporting Persons").
Veritas is the sole general partner of Veritas Capital.
The principal business of Veritas Capital consists of committing
capital to facilitate corporate restructurings, leveraged buyouts,
bridge financing and other investments. The principal business of
Veritas consists of performing the functions of, and serving as, the
general partner of Veritas Capital. The principal business and office
address of Veritas Capital and Veritas is 660 Madison Avenue, New
York, New York 10021.
Messrs. Robert B. McKeon and Thomas J. Campbell are the voting
members (the "Veritas Voting Members") of Veritas. Each of the
Veritas Voting Members is a United States citizen. The principal
occupations of each of the Veritas Voting Members is serving as an
executive of one or more of Veritas Capital, Veritas and their
affiliates. The Veritas Voting Members are the managing members of
Veritas. The business address of each of the Veritas Voting Members
is c/o Veritas Capital Management, L.L.C., 660 Madison Avenue, New
York, New York 10021.
During the last five years, none of the Reporting Persons (i) has
been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors), or (ii) was a party to a civil proceeding
of a judicial or administrative body of competent jurisdiction and as
a result of such proceeding was or is subject to a judgment, decree
or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or
finding any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Pursuant to a Stock Option Agreement, dated October 12, 2000 (the
"Option Agreement"), among Veritas Capital as the buyer and Lancer
Offshore, Inc., Lancer Partners, Limited Partnership and Michael
Lauer as the sellers (collectively, the "Sellers"), a copy of which
Option Agreement is attached hereto as Exhibit 7.2, the Sellers have
granted to Veritas Capital an option (the "Option") to purchase a
total of 1,728,900 shares of Common Stock (the "Optioned Shares") for
a purchase price of $17.50 per share in cash (the "Per Share Price")
or an aggregate purchase price of $30,255,750 (the "Purchase Price").
The Option may be exercised in whole (and not in part) at any time
prior to April 11, 2001. It is currently anticipated that Veritas
Capital and/or its limited partners who may co-invest with Veritas
Capital will provide the funds required to pay the Purchase Price if
the Option is exercised. If at any time prior to the expiration of
the Option, any person, including Veritas Capital or any of its
affiliates, shall have commenced a tender offer for any shares of
Common Stock, shall have effected a merger or other business
combination with the Company, or shall have acquired 20% or more of
the outstanding shares of Common Stock or all or substantially all of
the assets of the Company, then in any such event, at the time of its
exercise of the Option, Veritas Capital shall pay to the Sellers an
amount in addition to the Per Share Price equal to 50% of the product
of (a) the excess, if any, of (i) the greater of (A) the highest
price
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Page 7 of 14 Pages
SCHEDULE 13D
CUSIP NO. 23330X100
paid or proposed to be paid by such person for any shares of Common
Stock or (B) the aggregate consideration paid, or proposed to be paid
in such tender, merger or other business combination or for such
assets divided by the number of shares of Common Stock then
outstanding, over (ii) the Per Share Price, multiplied by (b) the
total number of Optioned Shares.
ITEM 4. PURPOSE OF TRANSACTION.
Veritas Capital acquired the Option for purposes of investment.
Veritas Capital has had, and continues to have, discussions with the
Company and its management regarding its possible acquisition of the
Company by way of a merger in which each share of the Company's
outstanding Common Stock would be converted into the right to receive
an agreed upon cash amount. If such a transaction were to occur, the
Common Stock would no longer be publicly traded and would be eligible
for termination of registration pursuant to Section 12(g)(4) of the
Act. To date, no agreement or understanding has been reached between
Veritas Capital and the Company.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) and (b) Pursuant to the Option Agreement, Veritas Capital was granted
the Option to purchase 1,728,900 shares of Common Stock
(approximately 18.6% of the outstanding Common Stock).
As the general partner of Veritas Capital, Veritas has the sole power
to vote or to direct the vote of, and to dispose or to direct the
disposition of, the Common Stock owned by Veritas Capital. As a
result, Veritas may be deemed to benefically own the shares of Common
Stock directly owned by Veritas Capital. The Veritas Voting Members
of Veritas have shared power to vote or to direct the vote of, and
dispose or to direct the disposition of, the shares of Common Stock
that may be deemed to be beneficially owned by Veritas. As a result,
each of the Veritas Voting Members may be deemed to beneficially own
the shares of Common Stock that Veritas may be deemed to beneficially
own.
(c) The best knowledge of each of the Reporting Persons, none of the
Reporting Persons has beneficial ownership of, or has engaged in any
transaction during the past 60 days in, any shares of the Common
Stock, except as described in this Schedule 13D.
(d) No person, other than the Reporting Persons, has the right to receive
or power to direct the receipt of dividends from, or the proceeds
from the sale of, the Common Stock referred to in this Item 5.
(e) Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
SECURITIES OF THE ISSUER.
The response to Item 3 is incorporated herein by reference. The
Joint Filing Agreement, dated as of October 12, 2000 (a copy of
which is attached hereto as Exhibit 7.1), is incorporated herein by
reference. See also response to Item 3.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 7.1 Joint Filing Agreement, dated as of October 12, 2000,
among Veritas Capital, Veritas and the Veritas
Voting Members.
Exhibit 7.2 Stock Option Agreement, dated October 12, 2000, among
Veritas Capital and the Sellers.
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Page 8 of 14 Pages
SCHEDULE 13D
CUSIP NO. 23330X100
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: October 18, 2000
THE VERITAS CAPITAL FUND, L.P.
By: Veritas Capital Management, L.L.C.
By: /s/ Robert B. McKeon
----------------------------
Name: Robert B. McKeon
Title: Member
VERITAS CAPITAL MANAGEMENT, L.L.C.
By: /s/ Robert B. McKeon
----------------------------------
Name: Robert B. McKeon
Title: Member
/s/ Robert B. McKeon
----------------------------------
ROBERT B. MCKEON
/s/ Thomas J. Campbell
----------------------------------
THOMAS J. CAMPBELL
