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Lockheed sells two units
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November 7, 1996: 1:34 p.m. ET
General Dynamics paying $450 million for combat vehicle, gun system divisions
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NEW YORK (CNNfn) - General Dynamics Corp. said Thursday it has agreed to pay $450 million for two Lockheed Martin Corp. units that make combat vehicles and gun systems.
The two businesses, Lockheed Martin Defense Systems and Armament Systems, are expected to produce about $500 million in revenues this year, the company said.
"Armament systems and defense systems are an excellent strategic fit with our organization," General Dynamics chairman and chief executive James R. Mellor said in a statement.
Defense Systems builds turrets and transmissions for combat vehicles, as well as missile guidance and naval fire control systems. Armament Systems produces advanced gun, ammunition handling and air defense systems, along with guns for land and sea-based applications.
"The acquisition expands our participation in armored vehicles from heavy tanks to light vehicles, and from full platforms to major subsystems," Mellor said.
Lockheed Martin Chief Executive Norman R. Augustine said the two units were both solid firms but outside Lockheed Martin's core business as it concentrates on larger scale electronic systems and systems integration work.
This is General Dynamics' third acquisition since September 1995, when the company bought shipbuilder Bath Iron Works, and subsequently Teledyne Vehicle Systems in March 1996.
Staff and wires contributed to this report
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