Litton Announces Completion of Avondale Acquisition

Litton Industries, Inc. announced the completion of its acquisition of Avondale Industries, Inc. for $39.50 per share in an all cash transaction valued at approximately $529 million in the aggregate. Avondale, based in New Orleans, designs, builds and overhauls ships for the U.S. Navy, the USCG and commercial customers. Avondale had revenues of approximately $750 million for the year ended December 31, 1998, and employs almost 6,000 people. "We are delighted to welcome Avondale and its employees to Litton," said Michael R. Brown, Litton chairman, president and CEO. "The merger with Avondale significantly broadens Litton's market coverage in both military surface combatants and commercial ships. We are committed to positioning Litton for growth in the shipbuilding market and the addition of Avondale enhances our reputation as a world-class shipbuilder." The newly created Litton Ship Systems organization, which will include Avondale and Ingalls Shipbuilding, will have combined revenues of approximately $1.8 billion in the shipbuilding and ship modernization market, and with its 17,000 employees, it will be capable of producing any class of non-nuclear ship for military or commercial customers. "We have already established a team comprised of Avondale and Ingalls employees to immediately move forward to join our two companies in a timely and efficient manner," said Jerry St. Pe', COO of Litton Ship Systems. "We have a great team in place to begin to take advantage of the many synergies, experience and expertise available in our two companies."