JACKSONVILLE, Fla. --- Armor Holdings, Inc. announced today that it has signed a Letter of Intent to acquire the assets of Sachsenring Fahrzeugbau GmbH of Bremen, Germany ("Trasco of Bremen") for approximately euro 5.7 million. The transaction is expected to close on or before September 1, 2002.
Sachsenring Fahrzeugbau GmbH, which operates under the brand name "Trasco Bremen," is a leading high-end armored vehicle manufacturer for a variety of customers in Europe, Asia and the Middle East. Trasco, which generated revenue of euro 20.2 million for the 12 months ended December 31, 2001, filed for protection under German bankruptcy proceedings in early June. Armor will purchase the assets of the continuing operations, which includes Trasco's state of the art 300,000 square foot armoring facility in Bremen, its intellectual property and its work in process inventory. In addition, Armor will retain a sufficient number of employees estimated to operate the facility profitably. Armor expects the transaction to be accretive to earnings per share in 2003.
"This will become our first strategic addition to the Mobile Security division since the acquisition of O'Gara-Hess & Eisenhardt last August," said Jonathan M. Spiller, President and CEO of Armor Holdings, Inc. "Trasco is known for the quality of its engineering and maintains outstanding relationships with Mercedes Benz, BMW and other luxury automotive OEMs. We intend to leverage these intangible assets as a base of manufacturing in Europe and hope to develop these relationships further with these very important German OEMs," Spiller added. "We also see opportunities to further develop the markets for cash in transit vehicles and military vehicles in both the German as well as the European markets, which remain highly fragmented."
Armor Holdings, included in Fortune magazine's list of "America's 100 Fastest Growing Companies" in 1999 and 2000, and a member of the S&P Smallcap 600 Index, is a leading manufacturer of security products for law enforcement personnel around the world through its Armor Holdings Products division and is the world's largest and most experienced passenger vehicle armoring manufacturer through its Mobile Security division. Armor Holdings Products manufactures and sells a broad range of high quality branded law enforcement equipment. Such products include ballistic resistant vests and tactical armor, less-lethal munitions, safety holsters, batons, anti-riot products and a variety of crime scene related equipment, including narcotic identification kits. Armor Holdings Mobile Security, through its Commercial Products division, armors a variety of vehicles, including limousines, sedans, sport utility vehicles, and money transport vehicles, to protect against varying degrees of ballistic and blast threats. Through its Military Products division, it is the prime contractor to the U. S. Military for the supply of armoring and blast protection for High Mobility Multi-purpose Wheeled Vehicles, commonly known as HMMWVs.
-ends- Armor Holdings To Acquire Trasco Bremen Of Germany