SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) 17 August 1995
General Dynamics Corporation
(Exact name of registrant as specified in charter)
Delaware 1-3671 13-1673581
(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
3190 Fairview Park Drive, Falls Church, Virginia 22042-4523
(Address of Principal Executive Offices) (Zip Code)
(703) 876-3000
Registrant's telephone number, including area code
INFORMATION TO BE INCLUDED IN REPORT
Item 5. Other Events
On August 17, 1995, the company reached an agreement
to acquire all of the issued and outstanding shares of Bath Iron
Works Corporation for a purchase price of $300,000,000 in cash.
The press release issued in this regard is attached as Exhibit
99.
Item 7. Financial Statements and Exhibits
(c) Exhibits.
99 - Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
GENERAL DYNAMICS CORPORATION
(Registrant)
By /s/ John W. Schwartz
John W. Schwartz
Staff Vice President and Controller
(Principal Accounting Officer)
Dated August 17, 1995
CONTACT: Norine Lyons FOR IMMEDIATE RELEASE
(703) 876-3190 August 17, 1995
GENERAL DYNAMICS TO BUY BATH IRON WORKS
FALLS CHURCH, Va. -- General Dynamics Corporation
[NYSE:GD] today announced that it has entered into a
definitive agreement to buy Bath Iron Works, a privately
owned shipyard in Bath, Maine, for $300 million in cash.
The transaction has been approved by the boards of directors
of both companies, and is subject to normal regulatory
clearances. General Dynamics will not assume any debt in
the transaction, which is expected to close within a month.
Founded in 1884, Bath Iron Works is the U.S. Navy's
premier builder of surface combatant ships, and has served
as the lead shipyard for 10 of the 20 classes of surface
combatants built for the Navy since World War II. Its 1995
revenues are estimated to be approximately $830 million, and
its total backlog is approximately $2 billion. The total
backlog includes contracts for the delivery of 11 DDG 51
destroyers through 2000. Navy plans call for the delivery
of an additional 25 destroyers through 2010; it is expected
that these will be allocated between Bath Iron Works and its
principal competitor.
General Dynamics Chairman and CEO James R. Mellor said,
"This acquisition benefits both companies and their
customers, and it clearly enhances value for General
Dynamics' shareholders, as well. We provide Bath Iron Works
a solid commitment to defense, a long tradition of
shipbuilding experience, and the financial strength to
invest in and modernize their facility. Bath brings us
leadership in their market, a skilled management team and
work force, and an impressive and sustainable backlog. In
addition, they share our commitment to ensuring affordable
products for the U.S. Navy."
Bath Iron Works President and CEO Duane D. Fitzgerald
said, "I'm very pleased that Bath is joining General
Dynamics. Together we have over two hundred years of naval
shipbuilding leadership. Equally important, General
Dynamics provides a solid financial foundation to enhance
Bath Iron Works' future. This is good for our employees,
their families, and the state of Maine."
After the close of the transaction, General Dynamics
will have a Marine group. The group will include General
Dynamics' Electric Boat nuclear submarine operations;
American Overseas Marine Corporation (AMSEA) pre-positioning
and ready-reserve ship management operations; and Bath Iron
Works. Each unit within the group will operate
independently, and will report to General Dynamics Executive
Vice President James E. Turner, Jr. , who will remain
president of the company's Electric Boat Division. The
Marine group is expected to have approximately $2.3 billion
of annual revenues.
Bath Iron Works employs approximately 8,300 people at
three primary locations in Maine: a headquarters and
shipyard in Bath; fabrication, warehousing and engineering
facilities in Brunswick; and an overhaul and repair facility
in Portland.
General Dynamics employs approximately 22,000 people and
has two primary operating units. Electric Boat,
headquartered in Groton, Connecticut, designs and builds
nuclear submarines for the U.S. Navy. Land Systems,
headquartered in Sterling Heights, Michigan, designs and
builds armored vehicles for the U.S. Army, U.S. Marine
Corps, and a number of international customers. Corporate
headquarters is in Falls Church, Virginia; 1994 sales were
$3 billion.
Bath Iron Works Five-Year Financial History
$ in millions
1991 1992 1993 1994 1995E
Sales $790 $821 $872 $893 $832
Operating Income* 50 60 44 50 48
Operating Margin* 6.3% 7.3% 5.0% 5.6% 5.8%
* Pre-tax, excludes debt service and goodwill amortization
