Avon Rubber PLC U.S. Defense Logistics Agency Body Armor Contract (5151H)
March 25 2020 - 3:00AM
UK Regulatory
TIDMAVON
RNS Number : 5151H
Avon Rubber PLC
25 March 2020
25 March 2020
Avon Rubber p.l.c.
U.S. Defense Logistics Agency Body Armor Contract
Avon Rubber p.l.c. is pleased to announce a competitively
awarded firm fixed price contract to supply the U.S. Defense
Logistics Agency with Enhanced Small Arms Protective Inserts
("ESAPI") body armor plates. These body armor plates are a legacy
product of 3M's Ceradyne ballistic-protection business, which was
acquired on 2 January 2020.
The framework contract has a maximum value of $333 million over
a three and a half year duration, being an 18-month base contract
plus two further one-year extension options. The contract has a
minimum value of $19 million.
The first order under this contract is anticipated shortly, with
deliveries expected to commence in early 2021. Avon Protection will
invest up to $5 million in capital expenditure across financial
years 2020 and 2021 to obtain product approvals and to expand
production capacity.
The successful award of this contract triggers $3 million of the
contingent consideration payable to 3M under the terms of the
acquisition, as announced on 7 August 2019. Additional contingent
consideration will become payable on receipt of orders under this
contract, with the maximum total contingent consideration payable
to 3M being $25 million.
Commenting, Paul McDonald, Chief Executive Officer, said:
"This is another significant, multi-year body armor contract for
Avon Protection in addition to the 2 existing U.S. Army Vital Torso
Protection ("VTP") contracts and represents further encouraging
momentum in our newly acquired ballistic protection business.
This further strengthens the medium term outlook and visibility
for Avon Protection and demonstrates our ongoing position as a
leading provider of body armor to the U.S. armed forces."
For further enquiries, please contact:
Avon Rubber p.l.c.
Paul McDonald, Chief Executive Officer 01225 896 848
Nick Keveth, Chief Financial Officer
Ryan Mahoney, Deputy Chief Financial Officer
MHP Communications
Andrew Jaques 0203 128 8570
Charlie Barker
Pete Lambie
Ailsa Prestige
Legal Entity Identifier: 213800JM1AN62REBWA71
Note to editors:
Avon Rubber is an innovative technology group, which designs and
produces specialist products and services to maximise the
performance and capabilities of its customers. We specialise in
life critical personal protection systems, as well as milking point
solutions through our two businesses, Avon Protection and milkrite
| InterPuls.
Avon Protection is a recognised global leader in respiratory and
ballistic protection for the world's Militaries and First
Responders.
milkrite | InterPuls is a global leader providing complete
milking point solutions to dairy farmers across the world with the
aim of improving every farm it touches.
For further information, please visit our website:
www.avon-rubber.com .
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contact rns@lseg.com or visit www.rns.com.
END
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