Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
    • 2022 Women Breaking the Mold
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Acquisition
May 13, 2021 03:26 PM

AirBoss acquisition bolsters military, health care offerings

Mike McNulty
Rubber & Plastics News Correspondent
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    AirBoss
    Blast gauge systems monitor, record and analyze blast and impact events for the military, first responders and athletes.

    NEWMARKET, Ontario—AirBoss Defense Group is taking another giant step toward expanding its presence in the global military and health care markets while branching out further into non-military sectors.

    A subsidiary of Newmarket-based AirBoss of America Corp., ADG will acquire 100 percent of BlackBox Biometrics Inc., the developer and producer of the Blast Gauge System of lightweight wearable blast overpressure sensors used by the U.S. Army, special forces and SWAT teams.

    AirBoss, which rode into 2021 with strong momentum thanks to record revenues in 2020, holds a minority interest in BlackBox Biometrics, called B3, and exclusive sales rights for the Blast Gauge System to the U.S. military.

    B3 is a leading technology company focused on preserving health, transforming behavior and optimizing performance, ADG noted. Its sensor systems monitor, record and analyze blast and impact events to protect members of the military, first responders and athletes, it added.

    Under an agreement between ADG and BlackBox, ADG will acquire B3 for up to $27 million, to be satisfied through $7 million in cash upon closing of the transaction and up to $20 million in royalties spread over eight years, based on revenues earned by ADG from B3 products.

    The deal is subject to customary closing conditions and expected to be finalized during the second quarter.

    Under terms of the agreement, ADG will acquire the entire BlackBox business, "which includes a plant and office in Rochester, N.Y., and a group of very talented employees who have developed, produced and sold the Blast Gauge along with other sensor related products," according to Chris Bitsakakis, president and chief operating officer of AirBoss.

    He said there are no short-term plans to move B3's manufacturing in Rochester to AirBoss' production facilities in the U.S. and Canada.

    AirBoss

    Rubber is not used in the production of B3's products, Bitsakakis said, pointing out that the acquisition is related to a growth strategy AirBoss has "to acquire high-growth products that can contribute to the creation of a soldier systems integration platform."

    However, he continued, the combination of electronic systems and ADG's chemical, biological, radiological and nuclear (CBRN) protective equipment, like the company's gas masks and gloves, eventually can help drive rubber growth.

    ADG already had the exclusive rights to market the Blast Gauge System to the U.S. military, Bitsakakis said, "but with the acquisition we have opened up our ability to sell the product to military and law enforcement agencies around the world."

    By purchasing B3, he noted, ADG will be able to access B3's complementary product lines used for monitoring brain health in athletes. The deal also gives ADG ownership of the relevant IP and prevents it from being bought by the company's competitors, he said.

    In addition, according to Bitsakakis, it will enable ADG to enter a new market as it expands the firm's products further into non-military applications. Basically, he added, "this acquisition will further our strategy of providing a diverse portfolio of protective equipment that spans the entire survivability spectrum for military, law enforcement, first responders, health care and other industries."

    B3's products include the Blast Gauge and its athlete-focused Linx IAS products, which AirBoss said provides parents, coaches and players with real-time feedback on potential concussion-causing impacts.

    ADG's purchase ties in nicely with AirBoss' strategy to focus on the company's four core priorities aimed at growing and improving the firm. One of the priorities calls for AirBoss to leverage ADG's enhanced scale and capabilities to pursue opportunities in the broad survivability products segment that serves both the defense and first responder markets.

    AirBoss also is targeting additional acquisition opportunities across its entire business with a focus on adding new compounds and products, building its technical capabilities and increasing its geographical reach into selected North American and global markets.

    In the company's annual financial report, released March 9, AirBoss recorded 2020 net sales of $132.2 million in the fourth quarter, up 54 percent from revenues garnered in the same period in 2019. For the full year, sales grew by 52.9 percent to $501.6 million in 2020 over sales for the previous year.

    Chairman and CEO P. Gren Schoch pointed out that 2020 was another record year for the company in terms of growth, profitability and free cash flow generation. It was AirBoss' 25th consecutive year of operating profitably and was "marked by the step change we achieved in the scale of our business through the formation of AirBoss Defense Group" at the beginning of 2020.

    "Through ADG, we have widened the aperture of opportunity for our business, established health care as a significant end customer base for our personal protective equipment and created the full value chain of a survivability platform, one that combines our decades-long experience, expertise and innovation in manufacturing design with new marketing, distribution and supply chain management expertise for a broadened customer base across the globe," he said.

    Related Article
    AirBoss unveiling high heat-resistant EPDM
    AirBoss gets U.S. glove pact worth up to $576 million
    AirBoss bunny boot contract worth up to $23 million
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Feds to help boost U.S. glove production
    2
    Danfoss Power Solutions, former Eaton Hydraulics see success a year after purchase
    3
    Wacky World of Rubber: The true story behind the rubber match
    4
    Cooper-Standard shows improvements amid headwinds
    5
    Trelleborg sails into 'known waters' with Minnesota Rubber, Plastics acquisition
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
        • 2022 Women Breaking the Mold
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION