General Dynamics has signed a definitive agreement to acquire Newport News Shipbuilding.
The acquisition, approved by the boards of directors of both companies, is to be accomplished through a cash tender offer for all of Newport News Shipbuilding’s publicly held outstanding shares at a price of $67.50 per share.
The transaction is valued at approximately $2.6 billion, which includes the assumption of approximately $500 million of Newport News Shipbuilding debt.
The tender offer will begin within seven business days. The acquisition, subject to the tendering of a majority of the Newport News Shipbuilding shares as well as regulatory review, is expected to close in the third quarter of 2001.
Following the completion of the tender offer and necessary approvals, General Dynamics intends to consummate a second-step merger in which all of the remaining Newport News Shipbuilding shareholders receive the same price paid in the tender offer.