Military Link-Up; DRS to Acquire Engineered Support Systems

Posted on September 22, 2005

DRS Technologies, Inc., Parsippany, N.J. and Engineered Support Systems, Inc., St. Louis, announced a definitive agreement for DRS to acquire all of the outstanding stock of Engineered Support Systems, Inc. for $1.97 billion. Upon completion of the acquisition, ESSI will become DRS's third operating group, focused on support and services.

Engineered Support Systems is a supplier of integrated military electronics, support equipment and technical services and also produces specialized equipment and systems for commercial and industrial applications. Operating through two business segments - Support Systems and Support Services - ESSI is comprised of 14 subsidiaries and employs 3600 people. Among its subsidiaries is Fermont, which manufactures a range of tactical generator sets.

ESSI said its primary areas of activity include engineering, logistics and training; advanced technology; asset protection systems; telecommunications and information technology; integrated logistics; systems integration; heavy and light military support equipment; power generation equipment and defense electronics systems. DRS Technologies, focused on defense technology, develops and manufactures a range of what it calls “mission critical systems.” The company employs 6000 people worldwide.