- Avon Rubber said it had been awarded a three-and-a-half-year contract worth a maximum $333m to supply the U.S. Defense Logistics Agency with enhanced body armor plates.

The first order under this contract was anticipated shortly, with deliveries expected to commence in early 2021. Avon Protection would invest up to $5m in capital expenditure across financial years 2020 and 2021 to obtain product approvals and to expand production capacity.

The framework contract had a maximum value of $333m over a three and a half year duration -- an 18-month base contract plus two further one-year extension options. The contract had a minimum value of $19m.

These body armor plates were a legacy product of 3M's Ceradyne ballistic-protection business, which was acquired on 2 January 2020, the company said.

'The successful award of this contract triggers $3 million of the contingent consideration payable to 3M under the terms of the acquisition, as announced on 7 August 2019. Additional contingent consideration will become payable on receipt of orders under this contract, with the maximum total contingent consideration payable to 3M being $25m,' it added.

At 8:46am: [LON:AVON] Avon Rubber PLC share price was +60p at 2620p

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