General Dynamics to Buy GM Unit

General Dynamics Corp. agreed to buy General Motors Corp.’s defense business for $1.1 billion in cash. The purchase would make General Dynamics the leading U.S. supplier of armored military vehicles.

GM Defense will add projected annual sales of about $965 million, General Dynamics said. Shares of Falls Church, Va.-based General Dynamics rose $1.72 to $79.85, while Detroit-based GM fell 26 cents to $36.11, both on the NYSE.