Defense contractor CAS now under new ownership

New York-based EDO completes $175 million deal

EDO Corp. has completed the acquisition of Huntsville's CAS Inc., a privately held company that provides engineering services, logistics support and weapons-systems analysis to the Department of Defense.

The previously announced purchase price of $175.6 million was funded from EDO's current cash balance, plus $100 million borrowed from the company's bank-credit facility, and 214,574 shares of restricted common shares.

"With the acquisition of CAS, we are tripling the size of our professional and engineering services business and substantially increasing our scope of work with the Army," EDO chief executive James M. Smith said Wednesday. "We are adding an excellent, well-respected work force and management team, with a shared commitment to excellence."

CAS provides systems engineering and analysis support for theater missile defense, air defense, aviation and land-combat missile systems, such as the Patriot missile program. The current Patriot support contract, valued at $377 million, runs till October 2008.

Founded in 1979, CAS has about 1,000 employees. Revenue for the 12 months ended March 31 was $184.3 million. CAS will become part of EDO's Engineered Systems and Services segment.

New York-based EDO designs and makes a range of products for defense, intelligence and commercial markets. It employs 4,000 and had 2005 revenue of $648 million.