FORT WORTH, Texas -- Lockheed Corp. announced Monday the completion of the $1.5 billion acquisition of General Dynamics' Tactical Military Aircraft business that makes the F-16 planes in Fort Worth.
The new Lockheed Fort Worth Co. will become part of Lockheed's Aeronautical Systems Group. The combined capabilities will position the Calabasas, Calif.-based company as the world's premier fighter producer, Lockheed said.
'This is a winning combination for all involved,'said Lockheed Chairman Daniel M. Tellep. 'For Lockheed, the $1.5 billion acquisition will have both positive financial and strategic benefits.
'This was a unique, one-time opportunity as our industry consolidates and it will contribute to a more cost effective, competitive industry both domestically and internationally,' he added.
Separately, Lockheed announced the election of Gordon R. England, B. Edward Ewing and Dain M. Hancock, who had been executives in the Fort Worth division, as vice presidents of the new corporation.
England will continue as president of the F-16 program, while the other two will remain as vice president-operations and vice president of the program.
'Completion of this transaction is positive news for our employees, our customers, the local community and for Lockheed,' England said. 'Ultimately, we believe, this consolidation will make the Fort Worth Co. and the other parts of Lockheed Aeronautical Systems Group significantly more competitive and efficient -- strengthening our ability to win and keep new business.'
Lockheed said the acquisition will raise its total sales to about $13 billion a year and make it the third largest U.S. aerospace exporter.
For 1993, Lockheed said the Forth Worth Co. is expected to generate revenues of approximately $3 billion.
'By combining the talents of Lockheed's Skunk Works, Sanders electronic systems and our Aeronautical Systems Co. with the manufacturing capabilities of Fort Worth, we have a significant partnership,' Tellep said. 'This will enable us to extend the life and capabilities of the F-16, but also provide our customer with a superior, affordable new product, the F-22.'
A task force headed by Lockheed Aeronautical Systems Group President Ken Cannestra and England will study ways to optimize the group's resources and chart the most efficient plan for the future, the announcement said.
The acquisition will end months of speculation about the future of the plant. Because of large defense cuts and the cancellation of the A- 12 program, the plant's employment has been reduced to about 20,000 from a high of 30,000 workers in the 1980s.
While the Lockheed acquisition may not immediately improve the prospect of additional jobs, Fort Worth officials see it as helping to bring two strong companies togtther in an industry where consolidaiton has become critical.
The sale of the division could prompt Lockheed to move its retrofit and other aicraft modification operations to Fort Worth from Califonria.
One likely home for the modification facility could be Fort Worth's Carswell Air Force Base which is scheduled to shut down in September. The base has several hangars and an airstrip which be used by Lockheed.
Such a move would increase the prospect of more jobs in the Fort Worth area.
Another windfall from the Lockheed tietup would be the Navy's next generation of attack plane program called AX. GD is one of the partners with Lockheed seeking the AX contract.
GD, along with Lockheed and Boeing, is also developing the F-22 Advanced Tactical Fighter, the Air Force's next generation of fighter planes.
However, regardless of the Lockheed purchase, GD plans to cut its work force by another 5,000 by the end of 1995 because of dwindling sales of F-16s which are now being sold mostly overseas.
