Article: DRS BUYING ENGINEERED SUPPORT\ A $2 BILLION DEAL IN CASH AND STOCK.(Business)

Byline: From staff and wire reports

Engineered Support Systems Inc., the parent of Keco Industries Inc. in Florence and two Withamsville defense contractors, is being bought by DRS Technologies Inc. for $2 billion in cash and stock, the companies announced Thursday.

Parsippany, N.J.-based DRS will pay $43 a share for all of Engineered Support's stock. That's a 29 percent premium over the stock's closing price on Wednesday and just about equal to its peak price of $42.63 in February.

The stock had been trending downward since the company disclosed problems with a defense contract at another subsidiary. It lowered its 2005 earnings projection in ...

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