NEWMARKET, Ontario—AirBoss of America Corp. has entered into an agreement to acquire Immediate Response Technologies L.L.C., a leading producer of personal protection and safety products.
It initially will pay about $37 million in the all cash transaction to buy all of the interests of IRT. That figure is subject to working capital adjustments. Additional payments in a combination of cash and equity of up to approximately $25 million over a five-year period could also be paid, subject to achievement of performance objectives over the 60-month period following the close of the transaction.
The acquisition is expected to close in the third quarter and is subject to normal regulatory approval along with approval from the Committee on Foreign Investment in the U.S.
IRT, based in Landover, Md., designs and manufactures respiratory protection systems and canisters; rapidly deployable chemical, biological, radiological and nuclear protection goods; medical isolation systems; rapidly deployable and expeditionary shelters; along with numerous other products for individuals, first responders, medical, military, law enforcement, and fire and industrial personnel.
It is expected to diversify AirBoss' defense business significantly and generate sales of about $30 million and earnings before interest, taxes, depreciation and amortization of between $8 million and $9 million in 2015.
The acquisition will provide an expanded defense product offering and diversification of revenue and cash flow, according to AirBoss President Lisa Swartzman.
“We believe IRT's product mix is uniquely positioned to respond to the increasing production needs of the first responder, law enforcement, medical and military communities to chemical and biological threats,” she said.
“With the acquisition of IRT comes an exceptional team of military and defense executives who will further enhance our existing defense operations, which will be fully integrated with the IRT business,” she noted.
Once the deal closes, IRT's senior managers, including Tom Ripley and Coleman Ruiz, and the broader IRT management team will continue to run the day-to-day operations of the business. IRT's work force is also being retained.
In addition, Ripley will become president of AirBoss Engineered Products.