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BAE Systems Global Combat Systems Munitions

BAE Systems Land & Armaments Inc.
Private (subsidiary of BAE Systems Plc)
Industry Defence
Founded 24 June 2005
Headquarters Arlington, Virginia, United States
Key people
Bob Murphy (President)
Products Military vehicles, artillery, naval guns, missile launchers and munitions
Revenue £6.7 billion (2009)
Number of employees
19,800 (2009)
Parent BAE Systems Plc
Website www.baesystems.com

BAE Systems Land & Armaments is a wholly owned subsidiary of BAE Systems Plc. 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. It was created on 24 June 2005, following the completion of BAE Systems' acquisition of United Defense in 2004 and its merger with BAE Systems Land Systems. In 2007 BAE Systems acquired Armor Holdings adding to the size of Land & Armaments significantly.

Until April 2003 BAE Systems was a relatively small player in the land systems industry, however following the 2004 purchase of Alvis Vickers, the aforementioned 2004 acquisition of United Defense, and the acquisition of Armor Holdings in 2007 it is now one of the largest land systems defence contractors in the world.

BAE Systems was formed in 1989 by the merger of British Aerospace (BAe) and Marconi Electronic Systems (MES). BAe's land systems business was RO Defence, a major manufacturer of explosives, ammunition and small arms. MES owned Vickers Shipbuilding and Engineering Ltd, manufacturer of the M777 howitzer.

On June 4, 2003 BAE Systems outbid General Dynamics for Alvis plc, the UK's principal land systems business. What had seemed a certain win for the US company was stopped by BAE Systems' surprise move. It has been seen as an attempt to keep such a strong competitor at bay in BAE Systems' "backyard." Alvis and BAE RO Defence were merged as BAE Systems Land Systems. When Dick Olver was appointed Chairman of BAE Systems in July 2003 he ordered a review of the company's businesses which confirmed the attractiveness of the land systems sector. This shift in strategy was described as "remarkable" by the Financial Times. On March 7, 2005 BAE Systems announced the $3.174 billion acquisition of United Defense Industries (UDI). UDI, a major competitor to General Dynamics, was primarily a land systems manufacturer, boosting BAE Systems' involvement in this sector and its sales in the important North American market. UDI manufactured combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions.


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