NEWMARKET, Ontario—AirBoss of America Corp. plans to expand its operations and branch out with the purchase of a leading producer of personal protection and safety products.
Its acquisition of Immediate Response Technologies L.L.C., based in Landover, Md., is expected to significantly diversify the offerings of AirBoss Defense, a business unit of AirBoss of America, and generate sales of about $30 million and earnings before interest, taxes, depreciation and amortization of between $8 million and $9 million in 2015.
It will boost the firm's defense business in North America and set the stage for it to become a major player globally with a new line of products. It is the second time in the last 20 months AirBoss has purchased a company to expand and diversify its operation significantly.
According to one analyst, the deal more than doubles AirBoss Defense's revenues.
AirBoss initially will pay about $37 million in the all-cash transaction to buy all of the interests of IRT, a producer of personal protection and safety products, according to AirBoss President Lisa Swartzman.
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 also could be paid, she said, 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.