Avon Protection PLC U.S. Defense Logistics Agency Body Armor Contract (8197M)

TIDMAVON

RNS Number : 8197M

Avon Protection PLC

24 September 2021

Avon Protection plc

U.S. Defense Logistics Agency Body Armor Contract

Avon Protection plc is pleased to confirm the U.S. Defense Logistics Agency ("DLA") has exercised the first of the two one-year extension options under the DLA Enhanced Small Arms Protective Inserts ("ESAPI") body armor contract.

The exercise of this initial option extends the contract to 22 September 2022 and triggers a minimum order value for the option year of $19 million.

The exercise of the option also triggers a further $3 million of contingent consideration payable to 3M under the terms of the acquisition of the Ceradyne ballistic protection business, as announced on 7 August 2019. This brings the total contingent consideration payable to date to $7 million. Additional contingent consideration will become payable on receipt of further orders in excess of the minimum order value of $19 million, with the maximum total contingent consideration payable to 3M being $25 million.

First article testing has progressed in line with the Company's expectations and formal product approval for the DLA ESAPI body armor is expected to be received during the first quarter of our 2022 financial year, with initial shipments expected during the second quarter.

Commenting, Paul McDonald, Chief Executive Officer, said:

"I am pleased with the progress the business has made since December to address the delays experienced in obtaining DLA ESAPI product approval.

This contract extension demonstrates our ongoing position as a leading supplier of body armor to the U.S. armed forces, as well as underpinning our FY22 body armor revenue expectations."

For further enquiries, please contact:

 
 Avon Protection plc 
 Paul McDonald, Chief Executive Officer    01225 896 848 
 Nick Keveth, Chief Financial Officer 
 
 MHP Communications 
 Andrew Jaques                             0203 128 8570 
 Charlie Barker                            avonprotection@mhpc.com 
 Pete Lambie

Legal Entity Identifier: 213800JM1AN62REBWA71

Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No 596/2014) ("MAR") prior to its release as part of this announcement and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Note to editors:

Avon Protection plc is listed on the London Stock Exchange (LSE: AVON) and is an innovative technology group, which designs and produces life critical personal protection systems to maximise the performance and capabilities of its customers, with leading positions in the respiratory and ballistic protection markets for the world's militaries and first responders.

For further information, please visit our website www.avon-protection-plc.com .

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