General Dynamics and Force Protection, Inc. have announced a merger agreement under which General Dynamics will acquire Force Protection for a price of $5.52 per share of common stock, or approximately $360 million.
Force Protection will become a part of General Dynamics Land Systems, the designer and manufacturer of Abrams main battle tanks and Stryker, LAV and ASLAV infantry combat vehicles.
The two companies are also rivals in the ADF’s Project Land 121 Ph.4 – Protected Mobility Vehicle (Light) in which their GD Eagle IV and Force Protection Ocelot vehicles are pitched against the Thales Hawkei and, possibly, the US JLTV.
"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 US forces around the world.
"With this acquisition, we will create new opportunities to serve domestic and international customers alike."
Michael Moody, the Australian-born chairman and chief executive officer of Force Protection, Inc., commented, "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.
"As part of the General Dynamics family, our innovative products and offerings will continue to provide militaries worldwide critical assets that save troops' lives."
Force Protection has approximately 1,100 employees and its specialty vehicles - including the Buffalo, Cougar and Ocelot - are at the forefront of blast- and ballistic-protected technology.
Those vehicles are designed specifically for reconnaissance and urban operations and to protect their occupants from landmines, hostile fire and IEDs.
The company has delivered more than 3,000 vehicles under the US military's Mine Resistant Ambush Protected (MRAP) vehicle program, and also provides Cougar and Buffalo mine-protected vehicles to foreign customers including the UK Ministry of Defence.