Teledyne Technologies announced Thursday it has entered into an agreement to acquire Rockwell Scientific Company for $167.5 million in cash, with the sellers retaining certain liabilities.
Rockwell Scientific, headquartered in Thousand Oaks, Calif., is a provider of research and development services, as well as a leader in developing and manufacturing infrared and visible light imaging sensors for surveillance applications.
The acquisition of Rockwell Scientific, which is 50 percent owned by each of Rockwell Automation and Rockwell Collins, is subject to customary closing conditions, the parties said in a news release.
As part of the acquisition, Rockwell Automation and Rockwell Collins have entered into service agreements to continue funding research performed by Rockwell Scientific.
In addition, Teledyne has agreed to license certain intellectual property of Rockwell Scientific to Rockwell Automation and Rockwell Collins.
For its fiscal year ended September 30, 2005, Rockwell Scientific had revenue of $114 million. Related presentation materials describing the proposed acquisition and Rockwell Scientific in more detail will be posted on Teledyne's Web site.
Through its Imaging division based in Camarillo, Calif., Rockwell Scientific designs and manufactures highly specialized optical sensors and subsystems for the infrared and visible spectrums, as well as advanced military laser protection eyewear.
The Imaging division provides highly sensitive space-based focal-plane-array sensors for both military and space science markets.
In addition, the Imaging division is one of only two companies selected by the U.S. Army to develop manufacturing processes to support production of third generation dual band infrared imagers that will allow warfighters to identify threats on the battlefield before the enemy can detect their presence.
Rockwell Scientific's research and development division, based in Thousand Oaks, Calif., provides research and engineering services primarily in three major market areas: electronics, materials technology and information sciences.
R&D services customers include government entities, such as the Defense Advanced Research Projects Agency and the U.S. Air Force, as well as leading aerospace and defense companies.
Prime contracts with the U.S. government represented greater than fifty percent of the sales in fiscal 2005 for Rockwell Scientific's R&D services division.
"Rockwell Scientific possesses advanced technology related to multiple Teledyne operations and will become a core business of Teledyne," said Robert Mehrabian, chairman, president and chief executive officer of Teledyne.
The divesting companies explained that Rockwell Scientific contributes technology across a wide spectrum of customers, and its alignment with Teledyne Technologies, a company with more common technological and market interests, will allow Rockwell Scientific to realize enhanced value and growth.
