UK defence firm, BAE, Buys NRI set up MTC Technologies for $448 Million

Dayton, Ohio, Jan 02, 2007
Surinder Singh

British defence firm, BAE Systems has entered into a agreement to acquire MTC Technologies- a Dayton, Ohio-based company for US$448 million. NRI Rajesh K. Soin, who founded Modern Technologies Corp (MTC) with wife Indu Soin in Dayton, Ohio, in 1984.

MTC Technologies, shareholders will receive $24 in cash per share of common stock, without interest, in the transaction, representing a total consideration for MTC Technologies, fully diluted share capital of US$367 million. Including the assumption of net debt of $81 million. MTC Technologies, had net assets of $187 million.

MTC has about 425 employees locally and owns the building they occupy at the Linden Ave headquarters and have been in Riverside since they were founded in 1984. The company has 3,000 employees nationwide and reported $415.5 million in 2006 revenue, up from $373.3 million in 2005.

MTC Technologies will be integrated into BAE Systems Customer Solutions operating group, headquartered in Arlington, Virginia, as part of the company's Technology Solutions & Services (TSS) line of business.

Herb Muktarian, a BAE spokesperson said:

• There are no plans right now to eliminate jobs or close facilities due to the acquisition.
• Our history as an organization is that we make acquisitions that are oriented towards growth
• What we tend to see is that those organizations (acquired) tend to grow.

BAE Systems' sales in 2006 exceeded $27 billion.

From Riverside's perspective, Murray said that he is sure Soin "is doing everything he can to maintain the jobs here and continue to contribute to the Dayton area."

Rajesh K. Soin chairman and chief executive officer of Soin International

• MTC has grown in 22 years to over $400 million in sales. MTC is Dayton, Ohio's largest defense contractor employing nearly 2,900 people worldwide in 40 locations
  
• Mr. Soin founded MTC Technologies Corp. in 1984, and has served as Chairman of the Board since then. Mr. Soin is a recognized entrepreneur, senior manager, and financial investor with a number of companies in his portfolio--including Soin International, its subsidiaries, and affiliates. Mr. Soin is an active philanthropist and educator, and serves as a part-time lecturer for the Raj Soin School of Business at Wright State University in Dayton, Ohio.

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