Northrop Grumman to Acquire Ryan Aeronautical

Los Angeles-based Northrop Grumman Corp. will acquire Ryan Aeronautical, an operating company of Allegheny Teledyne Inc. (Pittsburgh, PA), for $140 million in cash. Ryan Aeronautical's current business is primarily in the unmanned air vehicle (UAV) area, as well as specializing in the design, development, and manufacturing of unmanned airborne reconnaissance, surveillance, deception, and target systems for the Department of Defense and international military customers.

The transaction is expected to close in the third quarter of 1999. Upon completion of the transaction, Ryan will become an operating element of Northrop Grumman's Integrated Systems and Aerostructures Sector, in its Air Combat Systems business unit. Ryan's facilities are not included in the transaction, but it is anticipated that its current operations will remain in the San Diego area and move to another facility within a year. The company has approximately 300 employees.