Armor Holdings, Inc, a manufacturer and distributor of security products and vehicle armour systems announced today that it has executed an agreement to acquire Simula, Inc, for $110.5 million.
The transaction will be payable in cash or, at the option of Armor Holdings, in a combination of cash and registered shares of Armor Holdings common stock.
Today’s agreement provides for a good faith deposit, payment of a break-up fee if Simula accepts a competing offer, and other terms customary for similar transactions. The acquisition is subject to receipt of regulatory approvals, and the approval of Simula’s stockholders. The companies anticipate completion of the acquisition in the fourth quarter of 2003.
‘We expect the acquisition of Simula to diversify our product base, expand our technical capabilities and enhance our position as a leading supplier of armor, safety, and survivability systems to the US and foreign militaries, as well as emergency services,’ said Warren B. Kanders, Chairman and Chief Executive Officer of Armor Holdings.
In 2002, Simula, a safety technology company, reported revenues of approximately $114.6 million. On July 22, 2003, Simula sold its Automotive Safety Devices Division, which was included in its continuing operations in 2002 with reported revenues of approximately $35.1 million.
‘With the agreement complete, we can now turn our attention toward integrating Simula, and its strengths, into our global business,’ said Robert R. Schiller, Chief Operating Officer and Chief Financial Officer of Armor Holdings. ‘We expect the transaction to be immediately accretive to our shareholders.’