General Dynamics To Acquire GM Defense Unit

By Agence France-Presse U.S. defense company General Dynamics Corp. says it has agreed to acquire the Canadian-based General Motors Defense, a unit of the Detroit-based auto giant, for $1.1 billion in cash. In a statement, General Dynamics, Falls Church, Va., said it expects the deal to close by the end of the first quarter of 2003. GM Defense, which makes wheeled armored vehicles, already has a joint venture with General Dynamics, which makes Stryker, the Detroit-based army's light armored vehicle. The unit is expecting 2002 revenues of about $950 million dollars and has an order backlog of more than $1.5 billion. GM Defense also makes a light armored vehicle for Canada, Australia, New Zealand and Saudi Arabia, as well as Piranha combat vehicle for other international clients. The company has 2,400 employees at plants in California, Australia, Canada and Switzerland. Copyright Agence France-Presse, 2002