United Defense to acquire USMR. (Update).

Two companies closely associated with the name of Reagan era defense secretary Frank Carlucci have announced a deal. United Defense Industries has agreed to acquire closely held United States Marine Repair, Inc. (USMR), a leading provider of non-nuclear ship repair, modernization, overhaul and

United Defense is best known as prime contractor for the Crusader, the self-propelled gun that Defense Secretary Donald Rumsfeld now wants to cancel. United Defense's directors include Carlucci and John M. Shalikashvili, former Chairman of the Joint Chiefs of Staff. UDI is 49% owned by the Carlyle Group, whose chairman is Carlucci. UDI began trading as a public company in Dec. 2001.

Interestingly enough, it is the Carlyle Group from whom USMR is being acquired.

USMR has ship repair operations in Norfolk, Va.; San Diego, San Francisco and San Pedro, Calif.; Pearl Harbor, Hawaii; and Ingleside, Texas.

In the 12-month period ended March 31, 2002, USMR reported revenue of $431.7 million, net income of $12.3 million and adjusted EBITDA of $47.8 million.

United Defense expects to complete the transaction by the end of this month.