Tuesday, May, 26, 2020 04:11:37
AirBoss gets CFIUS approval & announces outside closing date extension
- The transaction proposed will be closing near the fourth quarter of 2019.
- The approval encourages both CSI and AirBoss to stay committed to closing on time.
AirBoss of America Corp., a manufacturer of products based on rubbers for military, heavy industry, automotive, oil & gas, and construction, recently announced that the Committee on Foreign Investment in the U.S has granted approval to close the merger of AirBoss Defense business, along with other operations in Quebec with Critical Solutions Internationals, Inc. that was previously announced. Additionally, the company also announced that the transaction’s outside closing date has also been extended to January 1, 2020, based on a mutual agreement.
Chris Bitsakakis, Chief Operating Officer and President at AirBoss stated that the final creation of AirBoss Defense Group will deliver the best opportunity to the company for the growth and diversification of the defense business in the near as well as longer-term. The company aims to focus on the organic growth of opportunities, potential complementary acquisitions and aggressive marketing of the existing product suite of the combined group.
Apparently, the approval granted by CFIUS has encouraged both CSI and AirBoss to stay committed to closing on time. The transaction proposed is expected to be closing around the fourth quarter of the year 2019.
The transaction will prove to be a strategic benefit for AirBoss as the defense operations and business in Quebec will yield strong returns for shareholders. The combination of the strength of both CSI’s expertise in distribution and global marketing of defense products along with AirBoss Defense in engineering and manufacturing design will create a dedicated defense player capable of capitalizing on emerging opportunities coming from present geopolitical environment.
For the uninitiated, AirBoss and Critical Solutions Internationals are expected to contribute shares that will help form AirBoss Defense Group in which AirBoss’ contribution has been valued at USD 100 million and the contribution of Critical Solutions Holdings Inc. has been valued at USD 32.7 million.
Source Credit- https://airbossofamerica.com/admin/uploads/press-releases/1567641694AirBoss_Announces_CFIUS_Approval_and_Extension.pdf