* Acquisition enhances company's position in fast-growing markets for
electronics and remote sensing systems
* Excellent strategic and technological fit
CHARLOTTE, N.C., Nov. 15 /PRNewswire/ -- In a strategic move that
significantly increases the company's position in space flight systems, The
BFGoodrich Company announced today that it has signed a definitive agreement
with Raytheon to buy its electro-optical systems unit. The business being
acquired develops and manufactures advanced products and technologies used in
space transport and payload applications, including systems used on the
sophisticated Hubble Telescope Satellite and Chandra X-Ray Observatory. The
companies expect to complete the cash transaction by year-end, pending
completion of government reviews. The purchase price was not disclosed.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000314/CHTU013-a )
The acquisition will dramatically advance BFGoodrich's strategy of
becoming a leading supplier of satellite attitude determination and on-orbit
control systems (ADOCS). In addition to being a world leader in precision
optical sensors and advanced large optical systems, the Raytheon unit, which
had revenues of $152 million in 1999, also makes laser warning systems and
visual surveillance systems for day and night use. While many of these
products were originally developed for military applications, there are
considerable opportunities in the commercial arena, which Goodrich will
pursue.
In commenting on the transaction, Marshall Larsen, President and Chief
Operating Officer of BFGoodrich Aerospace, said, "This acquisition will
enhance our capabilities to provide systems for space vehicle control
electronics and electro-optical remote sensing, two of the fastest growing
markets in the industry. In addition, the combination of BFGoodrich
technologies, including health and utility monitoring systems (HUMS), air data
computers, fuel management systems, and micro-electrical machines with
Raytheon's technologies in infrared sensors, electro-optics and spectral
analysis will enable us to explore new applications in the commercial aircraft
sector." Mr. Larsen added, "The company's rapid expansion in space flight
systems is a perfect example of our strategy to build substantial and
profitable businesses through small-to-medium complementary acquisitions
enhanced by internal capabilities. With this latest acquisition, we are well
on our way to creating a new and significant platform for profitable growth."
According to Michael Piscatella, President of BFGoodrich Aerospace's
Electronic Systems Group, "The acquisition will bring great products,
capabilities and people into our group. The talent of the Raytheon people was
a key factor in our decision, and we look forward to them quickly becoming
part of the Goodrich team."
Until early 1997, BFGoodrich's space business was limited to selling
temperature and fuel measurement sensors. With four acquisitions over the
past three years, the company has now assembled the skills and mass to become
a leading ADOCS supplier with the ability to move into electro-optical payload
design and manufacturing. In addition, BFGoodrich anticipates extending its
new capabilities into related areas of the aerospace market to maximize its
opportunities for profitable growth.
The BFGoodrich Company (NYSE: GR) has its headquarters in Charlotte, North
Carolina and employs 27,000 people worldwide. BFGoodrich's major business
segments currently include Aerospace, Performance Materials and Engineered
Industrial Products. Its Aerospace Segment, which accounts for $3.6 billion
of the company's $5.5 billion in annual sales, is one of the world's leading
suppliers of components, systems, and services to the aerospace industry. The
company was recently included as number six in Fortune magazine's top 10
ranking of the most admired companies in the aerospace industry. In April
2000, the company announced plans to divest the Performance Materials Segment.
For more information, please visit our website at http://www.bfgoodrich.com.
Raytheon Company (NYSE: RTN.A RTN.B) is a global technology leader that
provides products and services in the areas of commercial and defense
electronics and business and special mission aircraft. Raytheon has
operations throughout the United States and serves customers in more than 70
countries.
(Part of this announcement contains forward-looking statements that
involve risks and uncertainties, and actual results could differ materially
from those projected in the forward-looking statements. The risks and
uncertainties are detailed from time to time in reports filed with the
Securities and Exchange Commission, including but not limited to the last
section of the Management's Discussion and Analysis entitled "Forward-Looking
Information is Subject to Risk and Uncertainty" contained in the company's
Annual Report on Form 10-K, and in other filings.)
SOURCE The BFGoodrich Company
Web site: http: //www.bfgoodrich.com
Photo: NewsCom: http: //www.newscom.com/cgi-bin/prnh/20000314/CHTU013-a AP Archive: http://photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT: media, Kevin Ramundo, 704-423-7024, or mobile, 704-905-7892, or Gail K. Warner, 704-423-7048, or investors, Paul Gifford, 704-423-5517, all of The BFGoodrich Company
CAPTION: CHTU013-a THE BFGOODRICH LOGO The BFGoodrich Logo. (PRNewsFoto)[HD] CHARLOTTE, NC USA 03/14/2000
