General Dynamics Acquires Force Protection

Force Protection of Ladson has entered into a definitive merger agreement for General Dynamics to acquire the company for $360 million, or $5.52 a share.

Shares of Force Protection are up more than 30 percent in mid-day training.

Force Protection CEO Michael Moody stated in a conference call Monday reduced defense budgets and government spending uncertainty as part of the company's decision to enter into the agreement.

The company employs about 1,300.

General Dynamics will likely merge Force Protection with its Land Systems subsidiary Falcon Acquisition Corp., pending Securities and Exchange Commission filings, according to a statement released by Force Protection.

. The company's specialty vehicles, including the Buffalo, Cougar, Ocelot and the related variants of each, are designed specifically for reconnaissance and other operations and to protect their occupants from landmines, hostile fire and improvised explosive devices (commonly referred to as roadside bombs).

Force Protection released its third quarter financial results early Monday, showing the company had $143.6 million in net sales, which shows a "return to profitability," Moody said.

Moody described the offer by General Dynamics as "unsolicited" and would not disclose whether or not other offers were entertained by the company. 

When asked about future operations under General Dynamics Land Systems division, which competes with Force Protection, Moody stated: 

"We will continue to operate the company separate until the closing takes place."

After that time, the company's future operation will be up to General Dynamics, Moody added.