Avon Protection said on Friday that the US Defense Logistics Agency (DLA) has extended a body armour contract with the group.
The DLA has exercised the first of the two one-year extension options under the DLA Enhanced Small Arms Protective Inserts (ESAPI) contract. This extend the contract to 22 September 2022 and triggers a minimum order value for the option year of $19m.
The exercise of the option also triggers a further $3m of contingent consideration payable to 3M under the terms of the acquisition of the Ceradyne ballistic protection business, as announced on 7 August 2019.
Avon said this brings the total contingent consideration payable to date to $7m.
Chief executive Paul McDonald said: “I am pleased with the progress the business has made since December to address the delays experienced in obtaining DLA ESAPI product approval.
“This contract extension demonstrates our ongoing position as a leading supplier of body armour to the US armed forces, as well as underpinning our FY22 body armour revenue expectations.”
