General Dynamics and Force Protection, Inc. today announced a definitive merger agreement in which General Dynamics will acquire Force Protection for approximately $360 million, representing a price of $5.52 per share of common stock.
Per the agreement, Force Protection will become a part of General Dynamics Land Systems, the Michigan-based designer and manufacturer of Abrams main battle tanks and Stryker infantry combat vehicles.
Force Protection designs, manufactures, tests and delivers survivability solutions to support the armed forces of the United States and its allies, which are obvious and complementary services to General Dynamics Land Systems’ role as a leading manufacturer of wheeled, tracked and amphibious combat vehicles designed to meet current and future ground-combat requirements.
“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,” Mark C. Roualet, president of General Dynamics Land Systems stated in the press release.
Roualet also noted expectations that the acquisition will strengthen General Dynamics Land Systems’ ability to support assets deployed with U.S. forces around the world, creating new opportunities to serve its domestic and international customers.
Michael Moody, chairman and CEO of Force Protection, further detailed strengths of the acquisition.
“After careful consideration of the strategic direction of Force Protection, our board decided that a sale to General Dynamics would maximize value for our stockholders. With their armored vehicle business, General Dynamics will be able to pursue opportunities that we could not have pursued as a stand-alone company,” Moody stated in the press release. “As part of the General Dynamics family, our innovative products and offerings will continue to provide militaries worldwide critical assets that save troops’ lives.”
The transaction is expected to be accretive to General Dynamics’ earnings in 2012.
For more information visit www.generaldynamics.com
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