General Dynamics Reaches Agreement to Purchase Pfizer Complex in New London

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Jun 21, 2010, 11:30 ET

GROTON, Conn., June 21 /PRNewswire/ -- General Dynamics Electric Boat announced today it has reached a preliminary agreement with Pfizer, Inc., to purchase Pfizer's office complex in downtown New London, Conn. Under an early occupancy lease agreement, design and engineering employees will move into a portion of the three office towers in July. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

The transaction is contingent on the completion of a due diligence process to rule out any conditions that could prevent a sale and will accommodate growth in Electric Boat's engineering workforce.

"We have been coordinating closely with Governor M. Jodi Rell and the State of Connecticut, the city of New London, the U.S. Navy and Pfizer to determine if this site meets our needs, and the initial results are very encouraging," said John P. Casey, president of Electric Boat. "We appreciate the state's support, which was instrumental in making this transaction possible."

Engineers working on the Navy's next-generation submarine will be the first to move into the complex. They are expected to occupy two floors of Tower C in July. If the company proceeds with the purchase, the remainder of the 700,000 square-foot complex would be occupied in phases through 2011.

"When we looked at our facility requirements in the short term, and Pfizer's plan to move out of the building, they lined up very well," said Peter J. Halvordson, vice president of Engineering at Electric Boat. "It provides a quality workspace for our employees at the right time for our business."

Earlier this year, Electric Boat announced it was seeking office space to accommodate growth in its engineering workforce. In addition to requiring significant refurbishment, the existing space at Electric Boat is insufficient to house a larger engineering and design population. This move will enable the company to locate its engineering and design employees in modern office space at the best value to its customer.

Because Electric Boat's 18-month occupancy schedule fits with Pfizer's timetable to exit the New London site, the building complex will not spend any significant time unoccupied.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 91,200 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.

SOURCE General Dynamics Electric Boat