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Lockheed to Buy Pacific Architects

August 18, 2006|From the Associated Press

Lockheed Martin Corp., the largest U.S. military contractor, said Thursday that it had agreed to buy Pacific Architects & Engineers Inc. for an undisclosed cash amount, expanding Lockheed's range of support services for the military and other federal agencies.

Pacific Architects, based in Los Angeles, provides facilities operations and maintenance for military bases, personnel training and disaster relief services. The company has about 6,000 employees worldwide.

Terms of the cash transaction weren't disclosed.

Pacific Architects, which operates in more than 30 countries, has U.S. government agencies and international aid organizations as its main customers.

"PAE has been successful in leveraging its role as missions evolve from military readiness to peacekeeping, and finally nation building activities," said Bob Stevens, chief executive of Lockheed.

Bethesda, Md.-based Lockheed will operate the company as a wholly owned subsidiary called PAE under its information and technology services segment.

The acquisition, which is expected to close in September, is subject to closing conditions including regulatory approvals.

Lockheed's shares fell 29 cents to $83.58.

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