Defense contractor General Dynamics said it would purchase smaller rival Force Protection Inc for $5.52 a share, or $360 million, to expand its armored vehicle business.Shares of Force Protection, which also swung to a quarterly profit, shot up 30 percent, or $1.27, to $5.48. General Dynamics' offer is 31 percent more than Force Protection shares' Friday closing price.The deal comes as concerns linger over massive defense budget cuts and an expected withdrawal of U.S. forces from Afghanistan and Iraq.Force Protection is known for its Buffalo, Cougar and Ocelot brands of armored vehicles. Analysts said the potential for servicing sales tied to those vehicles was a likely draw for General Dynamics.
Force Protection, Inc. (Force Protection) provides survivability solutions to support the armed forces of the United States and its allies. Shares of FRPT traded higher by 30.29% or $1.275/share to $5.48. In the past year, the shares have traded as low as $3.27 and as high as $6.00. On average, 408989 shares of FRPT exchange hands on a given day and today's volume is recorded at 17587598.
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