General Dynamics (NYSE: GD) has entered an agreement to acquire Metro Machine Corp., a surface-ship repair company that supports the U.S. Navy fleet in Norfolk, Va., for an undisclosed amount of cash.
General Dyanmics expects the move to increase its earnings beginning in 2012.
Metro will join the shipbuilding and repair operations of General Dynamics’ NASSCO business unit.
Metro employs approximately 400 workers and is a prime contractor for multi-ship multi-option contracts for Navy combat and support ships, including FFGs, LSDs, LPDs and amphibious assault ships.
Upon acquisition completion, Metro Machine will become part of the shipbuilding and repair operations of General Dynamics’ NASSCO shipyard.
“With its Norfolk location, Metro Machine Corp. will extend the reach of NASSCO’s ship-repair operations to a key east coast naval port, ” said Fred Harris, president of General Dynamics NASSCO. “This move will enhance General Dynamics’ ability to deliver cost-effective maintenance and repair services to the U.S. Navy, helping the Navy to maximize the life of in-service ships and better serve the ship-repair needs of the entire U.S. fleet.”