Defence contractor General Dynamics to buy rival Force Protection for $360 mn
07 Nov 2011
US-based defence contractor General Dynamics is buying its smaller rival Force Protection Inc, in a $360-million deal, in order to expand its armored vehicle business.
Force Protection designs, develops and manufactures blast-and ballistic-protected wheeled vehicles currently deployed by the US military and its allies to support armed forces and security personnel in conflict zones.
The company's specialty vehicles, including the Buffalo, Cougar and Ocelot are designed specifically for reconnaissance and other operations that give protection against landmines, hostile fire, and improvised explosive devices.
The Summerville, South Carolina-based company has delivered more than 3,000 vehicles for the US military, and also provides Cougar and Buffalo mine-protected vehicles to foreign customers, including the UK ministry of defence.
Force Protection has a funded backlog orders worth $652 million and said it will deliver around 100 Buffalos per year for both 2012 and 2013.
Sterling Heights, Michigan-based General Dynamics will pay $5.52 per share, a 31 per cent premium to Force Protection's closing stock price of $4.21 on 4 November.
Force Protection will become a part of its Land Systems, which designs and manufactures Abrams main battle tanks and Stryker infantry combat vehicles.
"Force Protection complements and strategically expands General Dynamics' armored vehicle business, adding new products to the expansive portfolio of combat vehicles that we currently manufacture and support," said Mark Roualet, president of General Dynamics Land Systems.
