Divestiture • Defense

General Dynamics Acquires General Motors Defense

On December 18, 2002, General Dynamics acquired defense company General Motors Defense from General Motors for 1.1B USD

Acquisition Context
  • This is General Dynamics’ 2nd transaction in the Defense sector.
  • This is General Dynamics’ 6th largest (disclosed) transaction.
  • This is General Dynamics’ 1st transaction in Canada.
  • This is General Dynamics’ 1st transaction in Ontario.

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M&A Deal Summary

Date December 18, 2002
Target General Motors Defense
Sector Defense
Buyer(s) General Dynamics
Sellers(s) General Motors
Deal Type Divestiture
Deal Value 1.1B USD

Target Company

General Motors Defense

London, Ontario, Canada
GM Defense produces wheeled armored vehiclesand turrets. In a joint venturewith General Dynamics, GM Defense produces Stryker, the U.S. Army’stransformational combat vehicle. OtherGM Defense products include the LAV (Light Armored Vehicle) for Canada,Australia, New Zealand and Saudi Arabia; and the Piranha combat vehicle for anumber of international customers.
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Buyer Overview 1

Buyer

General Dynamics

Reston, Virginia, United States

Category Company
Founded 1899
Sector Defense
Employees117,000
Revenue 47.7B USD (2024)
DESCRIPTION
General Dynamics' Ordnance and Tactical Systems unit located in St. Petersburg, Florida.
General Dynamics' Ordnance and Tactical Systems unit located in St. Petersburg, Florida.

General Dynamics is an aerospace and defense company. It manufacturers business jets as well as provides combat systems to the US military. General Dynamics was founded in 1952 and is based in Reston, Virginia.


Deal Context for Buyer #
Overall 5 of 30
Sector: Defense 2 of 5
Type: Divestiture 2 of 3
State: Ontario 1 of 1
Country: Canada 1 of 2
Year: 2002 1 of 1
Size (of disclosed) 6 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-05-22 InfoWorkSpace

United States

InfoWorkSpace provides a secure virtual office where users can build online meeting places organized into virtual buildings, floors and rooms to meet and interact on projects in real time.

Sell $21M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-03-30 Creative Technology

Herndon, Virginia, United States

Creative Technology, Inc. is an information technology company. With approximately 300 employees holding high-level security clearances, Creative Technology primarily supports the intelligence community and the Department of Defense by delivering systems and network engineering, integration, software development, operations and technical consulting.

Buy -

Seller Profile 1

SELLER

General Motors

Detroit, Michigan, United States

Category Company
Founded 1908
Sector Automotive
Employees163,000
Revenue 187.4B USD (2024)
DESCRIPTION
General Motors' corporate headquarters in Detroit, Michigan.
General Motors' corporate headquarters in Detroit, Michigan.

General Motors is a global manufacturer of cars, trucks, and auto parts. General Motors' automotive group is separated into GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO) and GM South America (GMSA). GMNA develops vehicles manufactured and marketed under the Buick, Cadillac, Chevrolet and GMC brands. Outside of North America, vehicles are developed, manufactured and marketed under the Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall brands. GM also has equity ownership stakes directly or indirectly in entities through various regional subsidiaries, primarily in Asia. These companies design, manufacture and market vehicles under the Alpheon, Baojun, Buick, Cadillac, Chevrolet, Jiefang and Wuling brands. In addition to the products GM sells to dealers for consumer retail sales, GM also sells cars and trucks to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. General Motors was founded in 1908 and is based in Detroit, Michigan.


Deal Context for Seller #
Overall 1 of 6
Sector: Defense 1 of 1
Type: Divestiture 1 of 4
State: Ontario 1 of 1
Country: Canada 1 of 1
Year: 2002 1 of 1
Size (of disclosed) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1930-12-31 Electro-Motive Diesel

Lagrange, Illinois, United States

Electro-Motive Diesel designs, manufactures, and sells diesel-electric locomotives for the commercial railroad applications in the United States and internationally. The company provides railway transport and diesel engine solutions for intercity passenger, commuter, switching, freight, industrial, and mining applications. It also provides diesel power engines for marine propulsion, offshore and land based oil well drilling rigs, and stationary power generation, as well as OEM parts and services for rail, marine, and power generation applications.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-01-12 Electro-Motive Diesel

Lagrange, Illinois, United States

Electro-Motive Diesel designs, manufactures, and sells diesel-electric locomotives for the commercial railroad applications in the United States and internationally. The company provides railway transport and diesel engine solutions for intercity passenger, commuter, switching, freight, industrial, and mining applications. It also provides diesel power engines for marine propulsion, offshore and land based oil well drilling rigs, and stationary power generation, as well as OEM parts and services for rail, marine, and power generation applications.

Sell -

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