Australian defence company XTEK Limited has announced it has entered an agreement to acquire US market provider of body armour and personal protective equipment HighCom Armour Solutions, Inc.
Based in Columbus, Ohio, HighCom designs, develops, tests, manufactures and distributes hard and soft armour products and high quality ballistic and personal protective gear.
All HighCom products are certified by the US Department of Justice’s National Institute of Justice, which represents the highest compliance standard in the industry.
“This is a great opportunity for an Australian business to further expand and I congratulate XTEK on their announcement," Minister for Defence Industry Melissa Price said.
“As the Prime Minister has said, if you have a go, you’ll get a go – and our success in Australia’s defence industry is a result of companies like XTEK who are taking every opportunity to have a go.”
The company said that its acquisition of HighCom supports its strategy to commercialise its high-performance ballistic protection products, by accelerating their entry into key target markets in the US.
Through the acquisition, XTEK will gain direct access to HighCom’s well established US distribution network and existing manufacturing capability necessary to address the US military market.
“We thank Minister Price for her support of this transformational transaction, which represents a key milestone in XTEK’s evolution to becoming a leading ballistic armour player globally," XTEK managing director Philippe Odouard said.
“XTEK is now in a strong position to accelerate the commercialisation of its proprietary products by combining XTclave technology and existing manufacturing capabilities with an established and growing distribution network in the US, the largest defence market globally.
“We believe the acquisition of HighCom presents significant growth opportunities, with the potential to be the ballistic armour and personal protective equipment supplier of choice and to leverage this success and momentum into other key target markets globally.”
HighCom has an established US network of distributors, original equipment manufacturers and sales agents who supply major government and law enforcement agencies.
HighCom, as a US General Services Administration approved manufacturer, has the opportunity to grow direct distribution channels with the US government, including military, federal and municipal law enforcement agencies.
“This transaction is highly strategic and allows the combined entity to grow its customer base, deliver high quality and proprietary products, expand geographic reach and accelerate entrance into new markets," said James Black, director of HighCom Global Security Inc.
“More importantly, the deal structure enables shareholders of both XTEK and HighCom the opportunity to participate in the upside of a leading ballistic armour manufacturer.
“We are confident that the complementary combination will result in significant benefits to all shareholders, with the opportunity for a potential re-rating for the expanded shareholder base from enhanced presence, earnings and capital markets profile.”