Defense contractor General Dynamics (NYSE: GD) will pay a 31 percent premium for a Summerville, South Carolina firm that specializes in survivability products including armored vehicles.
Shareholders of both Falls Church-based General Dynamics and Force Protection, Inc. (NASDAQ: FRPT) have agreed to a purchase price of $5.52 per Force Protection shares which would come to approximate total of $360 million. The board of directors from both companies has already approved the deal.
The company would be absorbed into General Dynamics Land Systems unit in Sterling Heights, Michigan. That division focuses on battle tanks and 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," stated Mark C. Roualet, president of General Dynamics Land Systems. "In addition, Force Protection's skilled workforce provides high-quality support and sustainment services to an installed fleet of approximately 3,000 vehicles, strengthening our ability to support assets deployed with U.S. forces around the world. With this acquisition, we will create new opportunities to serve domestic and international customers alike."
Force Protection has approximately 1,100 employees, the company is known for its cutting edge vehicles including the Buffalo, Cougar and Ocelot. It has delivered more than 3,000 vehicles to the U.S. Military and United Kingdom Ministry of Defence.