3M announced that it has agreed to acquire the Scott Safety business from Johnson Controls for a total enterprise value of $2.0 billion. Based in Monroe, North Carolina and with approximately 1,500 employees worldwide Scott Safety provides self-contained breathing apparatus systems, gas and flame detection instruments, and other safety devices to customers including firefighters, industrial workers, police, military, and rescue teams. The business had 2016 revenues of approximately $570 million and EBITDA of $155 million. Based on a stated multiple of 11 times and expected run rate synergies, the business is projected to generate adjusted EBITDA of approximately $180 million for the 12 month period after closing.
The deal is expected to close in the second half of 2017. Citi and Goldman Sachs are the financial advisors to 3M. Centerview Partners is the financial advisor to Johnson Controls.
The Safariland Group announced that it has acquired Pacific Safety Products Inc. (PSP), Aegis Engineering Limited, and LBA International Limited. The acquisitions, which were made through Safariland's Canadian wholly owned subsidiary, expand Safariland's international presence in the body armor and tactical equipment markets.
Based in Arnprior, Canada, PSP is the largest body armor manufacturer in Canada, providing body armor, balistic blankets, tactical clothing and protective products against chemical and biological hazards. PSP's cients include the Canadian Department of National Defense and various Canadian government and law enforcement agencies. Based in the UK, Aegis manufactures body armor, ballistic helments, shields, blankets and rifle plates. Also based in the UK, LBA provides hard armor plates and balistic helments to law enforcement.
PSP was acquired for approximately CAD $15.4 million. Financial terms were not disclosed for the Aegis and LBA deals.
Canadian firm Mission Ready Services Inc. announced that its PTF Manufacturing division has acquired certain assets of ForceOne LLC. The assets acquired include manufacturing assets, trademark, customer list, and 23 certifications of models that comply with the US DOJ NIJ standard-0101.06 for ballistic-resistance of body armor of ForceOne. With the acquisition, PTF Manufacturing will manufacture various tactical products out of its Tennessee facility including various tactical vests and flexible shields. PTF Manufacturing will also offer various ForceOne armor accessories. Deal terms were not disclosed.
Smith & Wesson Holding Corporation announced that it has agreed to acquire Crimson Trace Corporation from private equity firms Penninsula Capital Partners LLC and VergePoint Capital LLC for $95 million. Crimson Trace produces laser sights for firearms which are used by retail, military and law enforcement customers. The business generated trailing 12-month revenue of approximately $44 million and EBITDA of approximately $16.1 million.
FLIR Systems Inc. announced that it has acquired Armasight Inc. in an all-cash deal worth $41 million. Based in San Francisco, California, Armasight is a provider of night vision, thermal, and daylight imaging products for hunters, law enforcement, and military customers. The company's solutions include rifle scopes, spotting scopes, binoculars, goggles, and illuminating tools. Revenue and profit figures weren't disclosed but FLIR expects the deal to be neutral to 2016 net earnings and accretive thereafter.
Reuters is reporting that Constellis Holdings LLC, the owner of the former Blackwater and Triple Canopy military security businesses is up for sale. Constellis' owners, Forte Capital Advisors LLC and Manhattan Strategic Ventures LLC, have hired BD&T to run an auction for the business and are hoping to get as much as a billion dollars for the business which is reported to have 12-month EBITDA of $170 million.
Based in Reston, Virginia, Constellis' 8,000 employees, most of whom are former military or law enforcement personnel, provides training and security services to customers worldwide. The business was originally founded as Blackwater, then changed its name to Xe Services after the fatal shooting of 14 civilians in Iraq 2007. In 2010, the company was sold to its current private equity owners and was rebadged ACADEMI. In 2014 the company was merged with Triple Canopy to form Constellis Holdings.
The Safariland Group announced that it has acquired substantially all of the assets of United Uniform Company Inc., a retailer and distributor of equipment, tactical gear and uniforms primarily for law enforcement and public safety professionals in New York State. Founded in 1949, United Uniform provides its products through retail stores and both direct and e-commerce sales. In addition, the company has been an exclusive distributor of Safariland products for over twenty years. Deal terms were not disclosed.
Beretta Holding SpA announced that its German subsidiary Steiner has acquired Sensor Technology Systems (STS) and Diffraction LTD from The O'Gara Group. Beavercreek, Ohio-based STS provides night vision goggles to special operations forces around the world. Diffraction is based in Burlington, Vermont and specializes in electro-optic devices including digital and fused imaging systems, optical beacons, and lasers.
Pietro Gussalli Beretta, President and CEO of Beretta Holding states: "Through the acquisition of STS and Diffraction, our Group achieves a fundamental step in its growth plan to achieve a leadership position in the field of electro-optics. We will continue our process of internationalization and investment in R&D to support the growth of all the companies of the group and to design products and solutions that are always innovative and competitive."
Both deals closed on December 31, 2015 and was financed using internal sources without external funding. Deal terms were not disclosed.
Industry Armament announced that it has entered into an agreement to acquire Predator Tactical, a provider of firearms and training solutions for the the military, law enforcement and civilian markets. Predator was founded by Matt Burkett, a world chamption shooter and is best know for its 1911 pistol platforms. Industry Armament plans on investing signficant capital into the business to expand production and distribution operations in Scottsdale, Arizona. The deal is expected to close in the first quarter of 2016. Deal terms were not disclosed.
Gentex Corporation announced that it has acquired Christiansburg, Virginia-based Aegisound LLC, a provider of hearing protection, safety and communications products. The acquisition will expand Gentex's contribution to the US F-35 Joint Strike Fighter (JSF) program by allowing it to provide hearing and communications products to JSF ground crews. Deal terms were not disclosed.
We provide you with the latest news on acquisitions in the Defense and Government markets. Make sure to subscribe to our weekly deal updates: