General Dynamics expands its line of armored vehicles.
General Dynamics Land Systems (GDLS) is expanding its line of tactical armored vehicles with the acquisition of Force Protection Inc (FPI). Despite the fact that General Dynamics (GDLS) is the leading US manufacturer of combat vehicles, it has not been able to gain a foothold in the market for vehicles resistant to improvised explosive devices (IED) and mines (Mine Resistant Ambush Protected-MRAP), giving way to this growing segment the market to domestic and international competitors, such as FPI, Oshkosh, Navistar, Thales and BAE Systems. Of all these companies, FPI offers the best synergy at a competitive price.
General Dynamics (stock designation: GD) plans to integrate Force Protection, Inc. (market designation: FRPT) into its division of Land Systems. General Dynamics will pay $ 5,52 for each share, or roughly 360 million dollars in total. The proposed acquisition was approved by the board of directors of both companies.
“After careful consideration of the strategic directions for Force Protection’s strategic development, our board of directors decided that the sale of our company to General Dynamics would be able to maximize our shareholders’ investments, ”said Michael Moody, chairman of the board of directors and chief executive officer of Force Protection Inc. - "General Dynamics with their armored car business will be able to realize opportunities that we could not do as an independent company."
FPI has shown impressive growth in international markets with such widely recognized products as Cougar, Buffalo and the new Ocelot, chosen by the British Defense Ministry as a finalist in the Australian rearmament program (Australian Land 121 program). The company was also selected among several finalists for Canadian tactical armored patrol vehicles (Tactical Armored Patrol Vehicle TAPV).
"Force Protection complements and strategically expands the General Dynamics armored vehicle business by adding new products to the expansive line of combat vehicles currently being manufactured," said Mark C. Roualet, President, General Dynamics Land Systems.
FPI is located in Ladson, South Carolina, and has 1100 employees. General Dynamics based in Stirling Heights, Michigan, has 8400 employees.
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