Janesville company to buy competitor
JANESVILLE--A Janesville defense contractor won an Army contract in March and now is poised to acquire the competitor it beat out.
National Presto Industries said AMTEC, it's Janesville-based subsidiary, has agreed to buy “substantially all of the assets” of DSE, a Florida-based defense contractor that manufactures and sells 40mm ammunition to the U.S. government.
In March, AMTEC announced that it had received a $64.5 million contract extension that would keep its plant busy for years. The U.S. Department of the Army awarded the extension for 40mm grenade systems.
In the last four fiscal years, AMTEC received original contracts and extensions of nearly $478 million, and more extensions are anticipated.
Unlike prior years, when the award was split between AMTEC and DSE, the Army in March awarded the entire amount to AMTEC.
Last month, DSE announced the permanent layoff of 113 employees at its Florida factory, the Tampa Bay Business Journal reported.
The closing of the DSE deal is contingent on an agreement that AMTEC will assume DSE's commitments under previous contracts.
An AMTEC spokesman in Janesville was unavailable to comment on the impact of the DSE acquisition on the Janesville operation.
AMTEC, a subsidiary of Eau Claire-based National Presto Industries, manufactures and assembles tactical and training ammunition, fuzes and firing devices. Built specifically for munitions manufacturing, the Janesville facility handles both high- and low-volume production items.
In Janesville, AMTEC employs more than 150 people. Janesville is home to the company's systems integration management operations and manufacturing.
The company also has about 700 employees at divisions in Antigo and Arkansas.
National Presto has three business segments.
The defense segment, which includes AMTEC, makes medium-caliber training and tactical ammunition, energetic ordnance items, fuzes, cartridge cases, less-than-lethal munitions and less-than-lethal accessory equipment.
The housewares division designs and sells small household appliances and pressure cookers.
The absorbent products division makes private-label adult incontinence products.