U.S. defense contractor General Dynamics Corp said Monday it would purchase smaller rival Force Protection Inc for $360 million to beef up its armored vehicle business, as the industry faces big cuts in spending.Shares of Force Protection, which also reported a quarterly profit that beat estimates, shot up 30 percent, or $1.28, to $5.49.The deal comes as concerns linger over a planned withdrawal of U.S. forces from important battlegrounds in 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 trucks 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 30.4% or $1.28/share to $5.49. 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 36794408.
General Dynamics Corporation offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; military and commercial shipbuilding, and communications and information technology. Shares of GD fell by 0.3% or $-0.19/share to $63.26. In the past year, the shares have traded as low as $53.95 and as high as $78.27. On average, 2642570 shares of GD exchange hands on a given day and today's volume is recorded at 657770.
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