Enter multiple symbols separated by commas

BAE Systems to Buy Armor Holdings for $4.1 Billion

British defense contractor BAE Systems moved to expand its share of the lucrative U.S. military market on Monday with a $4.1 billion deal to buy Army vest and truck maker Armor Holdings.

The deal is the second-largest U.S. purchase in two years for BAE, which is now the No. 8 supplier in the world's biggest military market. Two years ago, BAE bought U.S. armored vehicle maker United Defense Industries for about $4 billion.

UK-based BAE, which is expanding its military business after selling its stake in commercial planemaker Airbus , already gets about 40 percent of its sales in the United States.

The purchase price for Armor Holdings -- which makes military vehicles, Humvee armaments and body armor for soldiers -- was $88 per share, a 7% premium to its closing stock price on Friday. The companies expect the transaction to be completed during the third quarter.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Cramer: Here's a sign the market could rally

    Wall Street's been soaking in red, but "Mad Money" host Jim Cramer has one signal to watch for that could point to another run.

  • Burger war maneuvers

    Cramer looks at the number of company's selling burgers and tries to determine the quality names, as well as those to avoid.

  • Cramer: What's driving defense?

    Cramer says that even though President Obama has made it clear the US can no longer be the world's policeman, the country can become the world's arms dealer. Profiting from defense spending.