BAE Systems unit completes UDI acquisition

BAE Systems North America Inc. has completed its $4.2 billion acquisition of United Defense Industries Inc., the company said today.

The companies entered into a definitive merger agreement March 7.

BAE Systems is combining its existing land systems activities in the United Kingdom, Sweden and South Africa with UDI to form a new BAE Systems land and armaments operating group. The group will produce integrated battlefield systems, military vehicles, artillery, naval guns, missile launchers and precision munitions.

Based in Arlington, Va., the land and armaments group will be led by Tom Rabaut and will report to Mark Ronald, president and chief executive officer of BAE Systems North America Inc. of Rockville, Md. The land and armaments group employs about 11,000 people in the U.S., U.K., Sweden and South Africa.

UDI of Arlington, Va., designs and produces combat vehicles, artillery systems, naval guns, missile launchers and precision munitions for the U.S. military and its allies. It also provides non-nuclear ship repair and modernization to the Navy.

The company has 8,000 employees and had annual revenue of $2.3 billion in 2004. The UDI acquisition increases the number of BAE Systems employees in the U.S. to nearly 35,000.

Based in Rockville, Md., BAE Systems North America Inc. is the U.S. subsidiary of BAE Systems PLC of Farnborough, England. The parent company, the largest foreign player in the U.S. defense market, employs nearly 100,000 people worldwide and had 2004 revenue of nearly $25.7 billion.

BAE Systems North America is ranked No. 11 on Washington Technology's 2005 Top 100 list of prime contractors.