FALLS CHURCH, Va., Nov. 8 (UPI) -- General Dynamics is acquiring armored vehicle maker Force Protection of South Carolina for approximately $360 million.
Force Protection will become a part of General Dynamics Land Systems, the Sterling Heights, Mich., designer and manufacturer of 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 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."
The proposed acquisition has been approved by the board of directors of both companies.
Under terms of the merger agreement, General Dynamics will commence a tender offer for all outstanding shares of common stock of Force Protection. Force Protection's board of directors has resolved to recommend that Force Protection stockholders tender shares into the tender offer in accordance with the terms of the merger agreement.
The transaction is subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the companies expect the transaction to be completed by year-end 2011.
The transaction is expected to be accretive to General Dynamics' earnings in 2012.
Force Protection designs, manufactures, tests, delivers and supports its blast- and ballistic-protected products to increase survivability for users.