Avon Protection Reveals U.S. Defense Logistics Agency's Body Armor Contract; Stock Up

Shares of Avon Protection plc (AVON.L) were gaining around 6 percent in the early morning trading in London after the maker of life-critical respiratory and ballistic personal protection systems Friday announced the U.S. Defense Logistics Agency or DLA's body armor contract.

DLA has exercised the first of the two one-year extension options under the DLA Enhanced Small Arms Protective Inserts or ESAPI body armor contract.

The exercise of the initial option extends the contract to September 22, 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.

The total contingent consideration payable to date would be $7 million. Additional contingent consideration will become payable on receipt of further orders in excess of the minimum order value of $19 million. The maximum total contingent consideration payable to 3M would be $25 million.

Formal product approval for the DLA ESAPI body armor is expected to be received during the first quarter of 2022 financial year, with initial shipments expected during the second quarter.

In London, Avon Protection shares were trading at 2,034 pence, up 5.50 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Royal Caribbean Group's ultra-luxury brand Silversea Cruises is set to launch the world's first hybrid-powered cruise ship in the summer of 2023. This will also be the first ship with large-scale fuel cell technology to enable emission-free port operations. The fuel cells will provide 100% of power while at port. Affco USA is recalling around 24,461 pounds of frozen raw lamb shoulder products that were not presented for import re-inspection into the U.S., the U.S. Department of Agriculture's Food Safety and Inspection Service or FSIS announced. The recall involves the frozen raw lamb shoulder items that were imported on July 12, 2021. American Express Company (AXP) reported an increase in profit for the third quarter that also topped Wall Street estimates. Consolidated total revenues net of interest expense rose 25 percent year-on-year, primarily reflecting growth in Card Member spending, as well as a rise in the average discount...
Follow RTT