The story
The company started as a division of the agricultural machine business, Food Machinery Corporation (FMC), when they won a US Federal Government contract to build the Landing Vehicle Tracked (LVT) and became a weapon manufacturer during World War II. In 1964, FMC broadened their defense business by purchasing Northern Ordnance Company (formerly Northern Pump Company) in Fridley, Minnesota which specialized in Naval shipboard guns and missile launchers.
Bowen McLaughlin York (BMY), which became the BMY division of Harsco Corporation, was a separate business involving design and manufacture of various combat vehicles and other defense hardware. Following a massive decline in orders for tracked combat vehicles between 1983 and 1994, FMC and the Harsco Corporation agreed in January 1994 to combine their defense businesses to form United Defense. The new company owned the former FMC California-based Ground Systems Division, the former FMC Minnesota-based Armament Systems Division and Harsco's Pennsylvania-based BMY Combat Systems Division. The new company restructured its operations to concentrate final assembly and testing of combat vehicles to Pennsylvania.
In September 2000, UDI purchased Bofors Weapon Systems AB of Sweden, subsequently renamed Bofors Defence.
In 1997 UDI was subject to a takeover bids by rival General Dynamics and The Carlyle Group. It chose the lowest bid from private equity firm The Carlyle Group, which floated the company in 2001 but retained a share of the company.
BAE Systems acquisition
On March 7, 2005 UK-based defence contractor BAE Systems announced it was to acquire UDI for US$3.974 billion (£2.1 billion). This followed expressions of interest from companies including Northrop Grumman.
BAE Systems' bid was referred to the Committee on Foreign Investment in the United States (CFIUS) to ensure there were no national security implications of the sale. The CFIUS granted approval of the deal in April 2005. BAE completed its acquisition of United Defense on June 24, 2005 and announced plans to merge the company with its existing land systems businesses to form BAE Systems Land and Armaments.
From Wikipedia’s article on United Defense, shared under CC BY-SA 4.0.4