Industry Week in Review – June 22, 2012
The U.S. Army is looking to preposition equipment around the world to keep it in close proximity to potential flashpoints and to assist with training missions with partner nations. Army officials have said the current plan will call for approximately 11,000 Mine Resistant Ambush Protected Vehicles to be scattered globally in strategic locations, arguably places terrorist elements believe have the least resistance. According to the U.S. Army Chief of Staff General Ray Odierno, both Australia and Africa are critical places for such a program.
As the Pacific region attracts the attention of both the White House and the Pentagon, the Army plans to bring countries from around the region to Australia to conduct multilateral training efforts. Gen. Odierno already has 66,000 soldiers stationed in the Pacific area and is implementing this new program to ensure they remain dedicated to this region, since these troops are no longer rotating in and out of Iraq and Afghanistan.
Africa, on the other hand, will be home to various advisory missions and training operations, such as the AFRICOM command, a pilot program for the Regionally Aligned Force concept. This concept aims to deepen forces knowledge and understanding of the culture and politics in varying regions.
Finally, back in the U.S., Gen. Odierno hopes to strengthen ties with Special Operations Forces (“SOF”), particularly on foreign advisory and weapons of mass destruction missions that were developed in Iraq, in a continued effort to decrease complaints suggesting a lack of integration between SOF and general purpose forces.
Federal Signal Corp. (Up 21.9%) – Shares traded upward this week after the Company agreed to sell its Federal Signal Technologies LLC business to 3M Co. for $110 million in cash, in a step to reduce its debt.
American Science & Engineering Inc. (Up 5.1%) – Shares traded upward this week after an announcement that the Company received a new $6.7 million service and maintenance order from an undisclosed customer to support its fleet of American Science & Engineering detection systems.
Thales SA (Up 5.0%) – Shares traded upward this week after an announcement that the Company had been awarded a £29 million ($45 million) four-year contract from the UK Ministry of Defense to support their Intelligence Surveillance Target Acquisition & Reconnaissance Mission Support System.
CACI International Inc. to acquire Delta Solutions and Technologies Inc., a management consultant and IT specialist focused on federal financial management systems design, development, integration, and operations and maintenance. The acquisition will allow CACI to remain up-to-date on the financial management systems technology critical to the business operations of every federal agency. Terms of the deal were not disclosed, but an expected July 1st close date was announced.