Avon Rubber PLC U.S. Defense Logistics Agency Body Armor Contract (5151H)

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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March 25, 2020 03:00 ET (07:00 GMT)