GE to Acquire Ion Track, Inc., Leaders in Advanced Trace Substance Detection, from Castle Harlan, Inc. PLAINVILLE, Conn.--(BUSINESS WIRE)--Sept. 16, 2002-- GE Growing Rapidly in $20 Billion Global Electronic Security Products Market
GE Industrial Systems, a division of General Electric Company (NYSE: GE), and Castle Harlan, Inc., the New York merchant bank, announced today they have signed an agreement under which GE will acquire Ion Track, Inc.
Ion Track is a leading provider of advanced trace detection systems for use in aviation security, embassy and high threat facility security, military force protection, and interdiction of illicit drugs at borders, prisons, and within the community. Ion Track is the exclusive producer of systems commercially available today that can simultaneously detect traces of drugs and explosives, providing the broadest available range of contraband substance detection capability.
Ion Track has pioneered the development of advanced detection technologies, from the first handheld explosive detector using gas chromatography (GC) technology to its latest patented innovation, the Ion Trap Mobility Spectrometer(R) detector. Many illicit drugs and explosives are comprised of substances that are detected by Ion Track's recent, patented technologies. Ion Track's products quickly collect and analyze minute traces of vapor or particles given off by the contraband materials.
Electronic security is a $20 billion industry with strong growth ahead of it for the future, said Lloyd Trotter, president and CEO, GE Industrial Systems. Ion Track's leading-edge technology brings GE into a new area of security and is a great complement to our GE Interlogix business.
Our products and technologies contribute to improved public safety and security and provide advanced solutions to address many of the priority areas of the Homeland Security initiatives, said Anthony Jenkins, president and CEO, Ion Track, Inc. Ion Track's technology and market leadership fits with GE's strong brand and reputation for trust, growth and innovation. We are looking forward to growing with GE.
With Ion Track's technology leadership, we can now offer our customers a much broader portfolio of GE security solutions to challenges created by events in a changing world, said Kenneth Boyda, president and CEO, GE Interlogix, Inc. Ben Sebel, the Castle Harlan vice president who negotiated the transaction, said Ion Track was an extraordinary company. Working with management, we have had great success in growing Ion Track since we acquired the company in early 2000, Sebel said. We are confident of its continued growth, given GE's strong history of performance.
A majority interest in Ion Track is currently held by a private equity investment fund organized and managed by Castle Harlan. Ion Track's management also holds a substantial stake. The transaction, which is subject to government approvals and other customary conditions, is expected to close in the fourth quarter of 2002. Ion Track, based in Wilmington, Mass., will become a subsidiary of GE Interlogix, Inc., a part of GE Industrial Systems, based in Plainville, Conn. Terms of the transaction were not disclosed.
About GE Industrial Systems
GE Industrial Systems spans the globe as an industry leader in integrated industrial, electrical and security equipment, systems and services. The business brings to customers the latest technological products used to distribute, protect and control electrical power and equipment, and provides innovative product and service solutions for commercial, industrial, residential and utility applications. For more information visit the website at www.GEindustrial.com.
About Ion Track, Inc.
Founded in 1973, Ion Track, Inc. is a privately held company. With offices in many countries, the company sells to Governments world wide to provide explosives detection and drug interdiction equipment. Ion Track is an industry leader in developing advanced technologies to meet the changing needs of security and law enforcement. For more information visit the website at www.iontrack.com.
About Castle Harlan, Inc.
Castle Harlan was founded in 1987 by John K. Castle, former president and chief executive officer of Donaldson, Lufkin & Jenrette, Inc., and Leonard M. Harlan, former chairman of The Harlan Company, a real estate investment and advisory firm. Its $630 million investment fund, Castle Harlan Partners III, L.P., owns a controlling interest in Ion Track. Since its inception, Castle Harlan has made investments through its funds totaling more than $5 billion. For more information, visit the website at: www.castleharlan.com.
THIS NEWS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS. THE FOLLOWING FACTORS, AMONG OTHERS, COULD CAUSE THE ACTUAL RESULTS OF THE ACQUISITION TO DIFFER MATERIALLY FROM GE INDUSTRIAL SYSTEM'S EXPECTATIONS: THE ABILITY TO TIMELY AND FULLY REALIZE THE EXPECTED COST SAVINGS AND REVENUES; COMPETITION; CHANGES IN ECONOMIC CONDITIONS. GE INDUSTRIAL SYSTEMS DOES NOT ASSUME ANY DUTY TO UPDATE FORWARD-LOOKING STATEMENTS. SUCH STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY. SUCH STATEMENTS ARE BASED ON INFORMATION AVAILABLE AS OF THE DATE HEREOF, AND ARE MADE ONLY AS OF THE DATE HEREOF. TO THE EXTENT THAT SUCH STATEMENTS RELATE TO THE PROPOSED ACQUISITION REFERRED TO IN THIS RELEASE, THERE IS A RISK, AMONG OTHERS, THAT THE TRANSACTION MIGHT NOT BE COMPLETED.
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CONTACT: GE Industrial Systems
Terry Dunn, 860/747-7397
Email: [email protected]
or
Ion Track, Inc.
Anthony Jenkins, 978/658-3767
Email: [email protected]
or
Castle Harlan
Charles Storer, 212/371-2200
Email: [email protected]