Defence manufacturing group Avon Protection has offloaded part of its US body armour business ahead of closing down the division to cut losses.
The Melksham-based group, which specialises in protective gear, masks and breathing equipment for the military and first-responder markets, has sold the assets of the base in Kentucky to CoorsTek, a global manufacturer of advanced ceramics materials and an established supplier to the aerospace and defence industry.
Avon Protection said it had received what it called a “modest cash consideration” from the sale.
The base formed part of the armour business acquired through Avon Protection's $91m takeover two years ago of US giant 3M’s ballistics protection business, which also included a protective helmets business.
It is focused on manufacturing ceramic plates, an essential component of body armour and aircraft armour.
A year ago Avon Protection, which employs more than 1,000 people in seven locations, announced it was to wind down the armour division by 2023 after it failed tests for the US military.
Completion of the sale to CoorsTek is expected to take place in the first half of next year, once Avon Protection has fulfilled its final contractual obligations with its customers in line with the agreed wind-down plan.
Avon Protection chair Bruce Thompson, pictured, said the disposal provided a future for the facility and its team while allowing the wider group to focus on its core capabilities – “to deliver mission-critical respiratory and head protection solutions through our leading positions with the world's militaries and first responders”.
CoorsTek CEO Jonathan Coors added: “Avon Protection’s armour business is an excellent complement to our robust defence business.
“We are pleased to add these assets to our industry portfolio as we continue to grow in this region and drive further innovations and advancement in the armour and ceramics industry.”
Last month Avon Protection said it was looking ahead to a new “chapter of growth” as it reported a cut in pre-tax losses from $35.6m to $8.5m on revenues up 9.1% to $271.9m for the year to 1 October.
The group, which changed its name last year from Avon Rubber, also said it had made “significant progress” towards reducing overheads by $21m a year as it continued to bounce back from a tough year or so during which its shares lost around 70% of their value as it struggled to overcome damaging delays in military orders from the US.
