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General Dynamics to Buy San Diego Shipyard

October 09, 1998|Reuters

Defense contractor General Dynamics Corp. said it will buy a shipyard in San Diego, its first on the West Coast, for $370 million in cash plus the obligation to pay off about $45 million of the seller's debt. It said the purchase of San Diego-based Nassco Holdings Inc., the parent company of National Steel & Shipbuilding Co., an employee-owned shipbuilding and repair business, is expected to close Nov. 30. General Dynamics noted the deal will add immediately to its earnings. The agreement, which would bring Falls Church, Va.-based General Dynamics' total number of shipyards to three, has been approved by directors of both companies. General Dynamics already operates shipyards in New London, Conn., and in Bath, Maine. National Steel & Shipbuilding, with 4,000 employees, anticipates 1998 revenue of $485 million, and has a backlog of roughly $1.6 billion. General Dynamic stock was unchanged at $54 on the New York Stock Exchange.

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