Acquisition Positions Day & Zimmermann as Leading Large Caliber Munitions Supplier
Day & Zimmermann expands its core munitions and government services business through acquisition of American Ordnance, a leading ammunition manufacturer and supplier to the U.S. Army.
PHILADELPHIA, PA, July 25, 2007… Day & Zimmermann, Inc., a nationally recognized provider of products and outsourcing solutions for government and commercial customers, is now a leading producer and supplier of medium to large caliber ammunition and other explosives for the U.S. Army, thanks to its acquisition of American Ordnance LLC. Under this agreement, American Ordnance—a premier manufacturer and supplier of munitions to the U.S. military, U.S. domestic defense companies, and U.S. State Department-approved companies—becomes a wholly owned subsidiary of Day & Zimmermann.
The deal creates a single Government Owned Contractor Operated (GOCO) load, assemble, and pack (LAP) contractor with capabilities to produce most domestic large caliber ammunition, helping the U.S. military achieve significant production efficiencies and cost-savings. It also lets other defense contractors load, assemble, and pack products at American Ordnance facilities because they are not in direct competition with Day & Zimmermann.
"American Ordnance has safely produced millions of artillery, tank, and mortar rounds for Department of Defense customers, as well as missile warheads, medium caliber ammunition, and demolition products—an impressive resume that speaks to the quality and reliability of their products," says Michael Yoh, President, Munitions, for Day & Zimmermann. "Tapping their industry prominence augments our already extensive portfolio of munitions operations, while sharing our best practices will help accelerate our growth in this competitive industry. By increasing the depth, breadth, and efficiency of our munitions production capability, we will better serve valued military customers, and support mission-critical services."
Headquartered in Pittsburg, Kansas, American Ordnance provides a broad spectrum of training and tactical ammunition for the military. Other core competencies include installation, renovation, maintenance, and demilitarization of specific ammunition and explosive equipment. American Ordnance will continue to offer its full portfolio of products and services under the agreement.
Also as part of the acquisition, Day & Zimmermann will gain production facilities at the Milan Army Ammunition Plant in Milan, Tenn., and the Iowa Army Ammunition Plant in Burlington, Iowa, a plant that was designed and built by Day & Zimmermann in the early 1940s. These were the first LAP ammunition plants to become registered to the ISO 9001-2000 Quality Management Systems requirements. They will join Day & Zimmermann's existing contracts for the Kansas Army Ammunition Plant in Parsons, Kansas and Lone Star Army Ammunition Plant in Texarkana, Texas.
Day & Zimmermann also operates Hawthorne Army Depot in Hawthorne, Nevada. Hawthorne is the largest conventional ammunition depot in the U.S. Army system and the only contractor-operated munitions depot in the U.S. Army. With a storage capacity of nearly 600,000 tons, Day & Zimmermann typically ships and receives 40,000 tons of munitions annually at Hawthorne, qualifying it as a premier provider of munitions logistics.
ABOUT DAY & ZIMMERMANN
Day & Zimmermann accelerates customer success by delivering diversified services. Operating from more than 150 worldwide locations with 1.9 Billion USD in revenues, the Day & Zimmermann family of companies employs 23,000 professionals and is currently ranked as one of the largest private companies in America by Forbes and is a former winner of the U.S. National Family Business of the Year award. Founded in 1901 and headquartered in Philadelphia, PA, Day & Zimmermann companies today provide security services, architectural-engineering-construction services, power plant maintenance and modification services, staffing services, and validation services to businesses and government agencies, and munitions production, equipment maintenance and facilities management services to the Department of Defense. For more information, visit http://www.dayzim.com.
