ROCKVILLE, Md. - BAE Systems PLC, a defense and aerospace company, announced Monday that its wholly-owned U.S. subsidiary, BAE Systems, Inc., will acquire Armor Holdings Inc., a manufacturer of tactical wheeled vehicles, for $4.1 billion. Including the assumption of net debt of $388 million, the transaction is worth $4.5 billion.
The transaction is expected to be completed in the third quarter of 2007.
Armor Holdings, headquartered in Jacksonville, Fla., had sales of $2,361 million for the year ended Dec. 31, 2006, and employs over 8,000 people in 63 locations in the U.S. and internationally, including the UK.
The acquisition will allow BAE Systems to increase its presence in the global defense and aerospace market. When the transaction is completed, Armor Holdings will become part of BAE Systems’ Land and Armaments sector.
"Armor Holdings is a strong business with an excellent track record and a highly regarded management team. The combination of Armor Holdings with BAE Systems' existing land systems business will strengthen our capabilities to the benefit of the U.S. and UK armed forces and their international allies," said Mike Turner, Chief Executive of BAE Systems.
