Avon Rubber wins potential $333m contract from US Agency

26 March 2020 (Last Updated March 26th, 2020 11:16)

UK-based manufacturing firm Avon Rubber has secured a fixed price contract to supply a US federal agency with body armour plates.

Avon Rubber wins potential $333m contract from US Agency
Avon will deliver the US Defense Logistics Agency with its Enhanced Small Arms Protective Inserts. Credit: Avon Rubber plc.

UK-based manufacturing firm Avon Rubber has secured a fixed price contract to supply a US federal agency with body armour plates.

The UK firm will deliver the US Defense Logistics Agency with its Enhanced Small Arms Protective Inserts (ESAPI), a product from 3M’s Ceradyne ballistic-protection business which was purchased by Avon earlier this year.

The framework contract has a maximum value of $333m over its three-and-a-half-year duration, and a minimum value of $19m.

The first order is expected shortly with deliveries planned early next year.

Avon Protection will invest up to $5m in capital expenditure over the next two years for product approvals and expansion of production capacity.

Avon Rubber CEO Paul McDonald said: “This is another significant, multi-year body armor contract for Avon Protection in addition to the two existing US 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 armour to the US Armed Forces.”

Avon said the successful award of the contract triggers $3m of the contingent consideration payable to 3M under the acquisition terms.

Earlier this month, Avon Rubber has secured a four year, dual source framework contract to deliver the US Army with next-generation Vital Torso Protection (VTP) X-Side Ballistic Insert (XSBI) body armour plates.

As per the framework deal terms, Avon Protection will compete for each order of the $265m contract.