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® 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.