Singer Reaches Agreements on Sale of Two Divisions
STAMFORD, Conn. (AP) _ The Singer Co. today announced agreements to sell its Electronic Systems and HRB divisions for a total of $455 million as part of a previously announced divestment program.
Plessey North America Corp. will acquire Singer’s Electronic Systems Division for $310 million, and Hadson Corp. of Oklahoma City will acquire the company’s HRB Division for $145 million, Singer said in a statement.
The Electronic Systems Division, headquarterd in Wayne, N.J., produces airborne computers, radar navigation systems, tactical electronic equipment and other advanced electronic systems for the defense industry. It employs about 3,400 people and had revenues of $166 million in 1987.
Plessey, a wholly owned subsidiary of Plessey Co. of London, also produces electronic systems for defense and commercial use.
Singer and Plessey expect completion of the deal within 60 days.
The HRB Division, based in State College, Pa., develops signal interception, processing and analysis systems mainly for U.S. government intelligence operations. It employs about 1,700 people and had revenues of $119 million last year.
Hadson, based in Oklahoma City, Okla., is involved in defense, intelligence and space systems through its subsidiary, Ultrasystems Defense and Space Inc. The company is projecting revenues of $800 million this year.
Singer will receive $137 million in cash and 2 million shares of Hadson common stock, representing 5.4 percent of Hadson’s total outstanding common shares.
″We elected to take part of HRB’s purchase price in Hadson shares because of the exceptional fit between the company’s defense operations and HRB,″ said Paul A. Bilzerian, Singer’s chairman and chief executive officer.
″We are convinced that this acquisition and the company’s other plans for growth give Hadson a brilliant future. Therefore, our investment in Hadson’s common stock is totally supportive of its current management.″
The divisions are the fourth and fifth to be sold since Singer was acquired earlier this year by a partnership headed by Bilzerian. In making the acquisition, Bilzerian said at least part of the company’s operations would be divested.