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
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.