Newmarket, Ontario – AirBoss of America Corp. has closed on the merger between its AirBoss Defense businesses and Critical Solutions International Inc. to create AirBoss Defense Group.
The new entity will be a "dedicated defence player” better positioned to capitalise on emerging opportunities, the Canadian company said in a 2 Jan statement.
AirBoss develops and manufactures rubber-based compounds and products for industries, including automotive, heavy industry, construction and infrastructure, oil & gas, and defence.
Headquartered in Newmarket, Ontario, the company operate facilities in Canada and the US.
The transaction, which closed 1 Jan, saw AirBoss operations in Acton Vale, Quebec, merge with CSI, a privately owned, Charleston, South Carolina-based company.
CSI supplies route clearance vehicles as well as countermine capability and survivability products to US and foreign military forces.
AirBoss contributed shares of AirBoss Engineered Products Inc. and the membership interests of Immediate Response Technologies LLC – a Landover, Maryland-based company acquired by AirBoss in July 2015 – to the new Group.
"We have developed strong relationships with militaries, legislators and manufacturers globally, ideally placing us to identify, tender and win high-value contracts around the world," said Patrick Callahan, CEO of AirBoss Defense Group and former CEO of CSI.
As US defence spending budget reaches a record high and in view of global geopolitical instability, the new entity is “very well positioned” for growth, Callahan added.
AirBoss said that its contribution in the new unit is valued at $100 million (€90 million) while CSI’s parent company Critical Solutions Holdings Inc. contributed $32.7 million.
AirBoss will have a 55% equity in AirBoss Defense Group and $60 million in the form of a vendor take-back note, while CSH will hold a 45% equity interest in the new business.