Allied Defense Group sells Global Microwave Systems for $26 million

By Lisa Kerner

Charlotte, N.C., Oct. 1 - Allied Defense Group, Inc. sold its subsidiary, Global Microwave Systems, Inc., to a wholly owned subsidiary of Cobham plc for $26 million in cash, it was announced on Wednesday.

"The divestiture of GMS will allow the company to reduce and repay debt, and focus efforts on its key strengths in the ammunition market place," Allied Defense president and chief executive officer Major General (Ret) John J. Marcello said in a company news release.

"The completion of the sale of GMS represents another step in our strategic plan to dispose of non-core assets to reduce and repay our outstanding debt and strengthen our balance sheet," Marcello added.

It was reported in August that Allied Defense planned to sell GMS to generate liquidity to satisfy a potential put of the company's senior secured convertible notes that may be made in December and January.

Based in Vienna, Va., Allied Defense develops ammunition for defense departments and produces electronic and microwave security systems. The company was advised by Houlihan Lokey.

Cobham is a Wimborne, England-based company engaged in the development, delivery and support of advanced aerospace and defense systems for land, sea and air platforms.

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