California-based Gen Corp. Inc.'s Aerojet-General Corp. subsidiary has signed an agreement to acquire substantially all of the assets of the propulsion business of Sequa Corp.'s Atlantic Research Corp. subsidiary and the shares of ARC UK Limited.
Aerojet also will enter into a long-term agreement to provide propellant to ARC Automotive, Sequa's automotive air bag inflator operation. The air bag inflator business is not included in the sale to Aerojet.
ARC, with a facility in Clearfield, develops and manufactures solid rocket propulsion systems, gas generators and auxiliary rocket motors for both space and defense applications.
The purchase price of approximately $133 million in cash is expected to be financed primarily with the issuance of new debt securities. The transaction is expected to close in the summer.
The ARC propulsion business, with headquarters in Virginia, had sales of approximately $150 million for 2002.