Alvis plc
Encyclopedia
GKN
GKN plc is a multinational automotive and aerospace components company headquartered in Redditch, United Kingdom. The company was formerly known as Guest, Keen and Nettlefolds and can trace its origins back to 1759 and the birth of the Industrial Revolution.GKN is listed on the London Stock...
in 1998. Finally, it acquired Vickers Defence Systems from Rolls-Royce
Rolls-Royce plc
Rolls-Royce Group plc is a global power systems company headquartered in the City of Westminster, London, United Kingdom. It is the world’s second-largest maker of aircraft engines , and also has major businesses in the marine propulsion and energy sectors. Through its defence-related activities...
in October 2002. Alvis was acquired by BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
in 2004 and became BAE Systems Land Systems (Weapons & Vehicles), now part of the BAE Systems Land and Armaments
BAE Systems Land and Armaments
BAE Systems Land & Armaments is a subsidiary of BAE Systems Inc. and is responsible for the design, development and production of combat vehicles, ammunition, artillery systems, naval guns and missile launchers. It is the largest such company in the world...
operating group.
History
AlvisAlvis Cars
Alvis Car and Engineering Company Ltd was a British manufacturing company that existed in Coventry, England from 19191967. In addition to automobiles designed for the civilian market, the company also produced racing cars, aircraft engines, armoured cars and other armoured fighting vehicles, the...
became part of Rover in 1965, which ended the company's car manufacturing in 1967 to allow it to concentrate on the manufacture of armoured vehicles. In 1968 Rover and its Alvis subsidiary were incorporated into the Leyland Motor Corporation later British Leyland or BL. In 1981 the then nationalised BL sold the Alvis business to United Scientific Holdings for £27 million. United Scientific was a manufacturer of military sighting products.
In 1992 United Scientific adopted the name Alvis plc.
In October 1997 Alvis acquired Hägglunds to form Alvis Hagglunds AB
Land Systems Hägglunds
BAE Systems AB is a Swedish defence company and a subsidiary of BAE Systems Land and Armaments, whose ultimate parent is the British defence contractor BAE Systems. The company was formed in 2006 by the merger of Land Systems Hägglunds AB and BAE Systems Bofors.-BAE Systems Hägglunds:AB Hägglund &...
. In September 1998 Alvis acquired the armoured vehicle business of GKN
GKN
GKN plc is a multinational automotive and aerospace components company headquartered in Redditch, United Kingdom. The company was formerly known as Guest, Keen and Nettlefolds and can trace its origins back to 1759 and the birth of the Industrial Revolution.GKN is listed on the London Stock...
in a deal which saw GKN take a 29.9% stake in Alvis. GKN's shareholding was purchased by BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
in September 2003 for £73 million.
In early 2000 Alvis sold a share of its Avimo Group optronics subsidiary to Thomson-CSF
Thomson-CSF
Thomson-CSF was a major electronics and defence contractor. In December 2000 it was renamed Thales Group.-History:In 1879 Elihu Thomson and Edwin Houston formed the Thomson-Houston Electric Company in the United States....
and sold all of its remaining shareholding to Thales Group
Thales Group
The Thales Group is a French electronics company delivering information systems and services for the aerospace, defense, transportation and security markets...
(the renamed Thomson-CSF) in 2001.
In 2002 Alvis acquired Vickers Defence Systems from Rolls-Royce
Rolls-Royce plc
Rolls-Royce Group plc is a global power systems company headquartered in the City of Westminster, London, United Kingdom. It is the world’s second-largest maker of aircraft engines , and also has major businesses in the marine propulsion and energy sectors. Through its defence-related activities...
for £16 million to form Alvis Vickers The acquisition of Vickers brought the Challenger tank
Challenger 2 tank
FV4034 Challenger 2 is a British main battle tank currently in service with the armies of the United Kingdom and Oman. It was designed and built by the British company Vickers Defence Systems . The manufacturer advertises it as the world's most reliable main battle tank...
into Alvis' portfolio, as well as Vickers' successful military bridging division and its South African subsidiary Vickers OMC
BAE Systems Land Systems South Africa
BAE Systems Land Systems South Africa is a South African defence company and a subsidiary of BAE Systems Land Systems, itself part of BAE Systems Land and Armaments...
.
BAE takeover
In 2004, the board of Alvis approved a £309m takeover bid by the American defence company General DynamicsGeneral Dynamics
General Dynamics Corporation is a U.S. defense conglomerate formed by mergers and divestitures, and as of 2008 it is the fifth largest defense contractor in the world. Its headquarters are in West Falls Church , unincorporated Fairfax County, Virginia, in the Falls Church area.The company has...
. Within three months BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
, which already had a 29% stake in the company, outbid General Dynamics by offering £355m. The action was seen as a defence of the home market from a foreign rival. David Mulholland of Jane's Defence Weekly
Jane's Defence Weekly
Jane's Defence Weekly is a weekly magazine reporting on military and corporate affairs, edited by Peter Felstead. It is one of a number of military-related publications named after John F. T. Jane, an Englishman who first published Jane's All the World's Fighting Ships in 1898...
said "I don't believe BAE expects to make money from this deal," characterising the purchase as strategic rather than commercial. The bid was accepted by the majority of shareholders.
In September 2004, BAE announced the creation of BAE Systems Land Systems, a new company bringing together the BAE subsidiaries, BAE Systems RO Defence and Alvis Vickers. Alvis Vickers became BAE Systems Land Systems (Weapons & Vehicles) Limited, a subsidiary of BAE Systems Land Systems. In 2005, the acquisition of United Defense
United Defense
United Defense Industries was a United States defense contractor which is now part of BAE Systems Land and Armaments. This company produces combat vehicles, artillery, naval guns, missile launchers and precision munitions.-History:...
led to the creation of BAE Systems Land and Armaments
BAE Systems Land and Armaments
BAE Systems Land & Armaments is a subsidiary of BAE Systems Inc. and is responsible for the design, development and production of combat vehicles, ammunition, artillery systems, naval guns and missile launchers. It is the largest such company in the world...
.