VIENNA, Va., Aug. 6 /PRNewswire/ -- GRC International Inc. (NYSE: GRH)
today announced it has signed a definitive purchase agreement with Management
Consulting & Research Inc. (MCR) to acquire all of the outstanding shares of
MCR and its subsidiaries. The purchase price of approximately $27 million
includes two million shares of GRCI stock to be held by MCR Chairman and CEO
Dr. Gerald McNichols (MCR's principal shareholder), with the remainder in
cash. GRCI expects MCR to have approximately $4 million cash at closing,
bringing the net cost of the acquisition down to about $23 million. Closing is
expected within 30 days pending regulatory and MCR shareholder approval.
Management Consulting & Research has a 22-year history of successfully
providing a variety of advanced cost analysis, financial management and
program management services to its federal government customers. Most of its
work has been with the U.S. Air Force. MCR has grown substantially over the
past several years to become a strong competitor in its markets with current
revenues of approximately $30 million. GRC International expects to retain
MCR's management team, employees and facilities and operate MCR as a wholly
owned subsidiary from MCR's headquarters in McLean, Va. Dr. McNichols plans to
continue in a transition role with GRCI and will be nominated to serve as a
director of GRC International.
GRC International President and CEO Gary Denman said, "I am extremely
pleased with the expanded capabilities this acquisition provides GRC
International. MCR is known for the quality of its services and employees, and
its focus on profitability. It has been honored as an 'Inc. 500' company,
'Washington Technology Fast 50' company, 'National Technology 500' company,
and 'Virginia Fantastic 50' company. MCR brings a set of complementary and
valuable skills that we can apply to our current clients, and provides direct
access to a new set of clients for GRCI's technical services.
"As I have stated before," continued Denman, "acquisitions are very much a
part of our growth strategy. We have been very selective in this acquisition
program to ensure that it will be compatible with our existing operations, and
one that we expect to be accretive to earnings and a positive contributor to
shareholder value. The acquisition of MCR is an excellent start and keeps us
on track to achieve our growth objectives. I look forward to working closely
with Dr. McNichols and the rest of his management team as we continue to
execute our plans."
GRC International Inc., headquartered in Vienna, Va., is a leading
provider of professional services focusing on information technology,
management consulting, and scientific engineering for a national clientele in
the government and commercial sectors. GRCI is a publicly traded company
listed on the New York Stock Exchange under the symbol GRH. Additional details
about GRC International can be obtained on the Internet at
http://www.grci.com/. Details concerning MCR can be viewed at
http://www.mcri.com.
Inquiries: James Allen, CFO, (703) 506-5574, or Wayne Jackson, Director,
Corporate Communications, (703) 506-5038. GRCI press releases are available on
the Internet through Company News On-Call at http://www.prnewswire.com/.
SOURCE GRC International Inc.
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Related links:
http://www.grci.com
Company News On-Call:
http://www.prnewswire.com/comp/320275.html or fax,
800-758-5804, ext. 320275
CONTACT:
James Allen, CFO, 703-506-5574, or Wayne
Jackson, Director, Corporate Communications, 703-506-5038, both
of GRC International Inc.
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