This story appeared in the Detroit News:
Sale of the business with military contacts in Iraq and Afghanistan is worth nearly $2B.
Washington--As President Bush embarks on a new effort to shore up public support for the war in Iraq, an uncle of the chief executive is collecting $2.7 million in cash and stock from the recent sale of a company that profited from the war.
A report filed with the U.S. Securities and Exchange Commission shows that William H.T. Bush collected a little less than $1.9 million in cash, plus stock valued at more than $800,000 as a result of Engineered Support Systems Inc. to DRS Technologies of New Jersey. The $1.7 billion deal closed Jan.31. Both businesses have extensive military contracts.
The elder Bush was a director of Engineered Support Systems. Recent SEC filings show he was paid cash and DRS stock in exchange for shares and options he obtained as a director. Missouri-based ESSI experienced record growth prior to its purchase by DRS through expanded U.S. military contracts, many to supply current U.S. efforts in Irag and Afghanistan and an aggressive buyout strategy targeted at other defense contractors.
The military contracts, some awarded on a sole-source basis, include a $77 million pact to refit military vehicles with armor. Other ESSI products used in the war include radar and detection services, field midical stations and field electrical generator units.
SEC filings show there are two ongoing federal investigations of ESSI--one involving a stop order issued by the federal government on the ESSI contract to supply field generators. The order was issued because of operational problems with the units.