Avon Protection PLC U.S. Defense Logistics Agency Body Armor Contract (8197M)
24 September 2021 - 3:59PM
UK Regulatory
TIDMAVON
RNS Number : 8197M
Avon Protection PLC
24 September 2021
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 .
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
CNTPPUCABUPGGAW
(END) Dow Jones Newswires
September 24, 2021 01:59 ET (05:59 GMT)
Avon Protection (LSE:AVON)
Historical Stock Chart
From Apr 2024 to May 2024
Avon Protection (LSE:AVON)
Historical Stock Chart
From May 2023 to May 2024