Advanced Technical Products
signed a definitive agreement to be acquired by
in a deal worth about $197 million.
General Dynamics plans to acquire each of the shares of Advanced Technical for $33.50 in cash, a 17% premium over the stock's Wednesday closing price of $28.53. General Dynamics will also assume about $36.2 million of Advanced Technical's debt and retire about $16.2 million in the company's stock options.
The acquisition, which is expected to close within the next 60 days, still requires the approval by Advanced Technical's shareholders and regulatory authorities. If the deal is approved, General Dynamics plans to add Advanced Technical to its armament systems segment.
In a press release, the companies said they have many of the same customers and highly complementary technologies. General Dynamics is a defense contractor, and Advanced Technical Systems makes advanced composite-based products used on fighter jets and helicopters. The company also develops biological and chemical detection systems.
Shares of Advanced Technical were climbing 16.7% to $33.28, while General Dynamics was off 0.5% at $98.