November 7, 2011 - General Dynamics (GD) is buying Force Protection Inc. (FRPT) stock today for a bid of $360 million. Shares of Force Protection Inc. (FRPT) are up 30% to $5.50 in pre market trading.
General Dynamics and Force Protection Agree to Terms of Acquisition
- Force Protection shareholders to receive 31% premium over recent share price.
- Transaction expected to be accretive to General Dynamics' earnings in 2012.
General Dynamics (NYSE:GD) and Force Protection, Inc. (NASDAQ:FRPT) today announced that they have entered into a definitive 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 Sterling Heights, Mich.-based 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. With this acquisition, we will create new opportunities to serve domestic and international customers alike."
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