General Dynamics and Force Protection, Inc. today announced a merger in which General Dynamics will acquire the Summerville based company for a price of $5.52 per share of common stock, or approximately $360 million. That will bring Force Protection shareholders a 31 percent premium over its recent share price.
At the first of the year, the company settled a class action lawsuit brought by investors for $24 million.
Force Protection will become a part of General Dynamics Land Systems of Michigan, the manufacturer of Abrams tanks and Stryker infantry combat vehicles.
Michael Moody, chairman and CEO of Force Protection, Inc., says, “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.”
Force Protection has approximately 1,100 employees and manufactures the Buffalo, Cougar and Ocelot vehicles which are designed for reconnaissance and urban operations and to protect their occupants from landmines, hostile fire and improvised explosive devices.
General Dynamics Land Systems employs approximately 8,400 workers.