Newmarket, ON – AirBoss of America Corp. (TSX: BOS) (the “Company” or “AirBoss”) today announced that its wholly-owned subsidiary AirBoss Defense Group (“ADG”), a global leader in survivability for the assured mobility and chemical, biological, radiological, nuclear, and explosive (“CBRNE”) communities, has been awarded a contract worth up to US$576 million by the U.S. Department for Health and Human Services (“HHS”) – Office of the Assistant Secretary for Preparedness and Response (“ASPR”) for the sale of nitrile patient examination gloves. HHS has provided ADG authorization to proceed immediately on an initial order expected to be worth up to US$288 million, with an equivalent follow-on option which HHS may exercise later in 2021 for an additional US$288 million. This award builds upon ADG’s successful history of providing protective and survivability solutions to the U.S. federal government.
“Our track record in delivering critical medical equipment and supplies during the most challenging of times, on time and on budget, has once again put us in a position to partner with HHS to supply a critical need. AirBoss Defense Group has continually demonstrated its strength as a domestic supplier of PPE designed to protect healthcare workers, first responders and military personnel against communicable diseases and CBRNE threats,” said Gren Schoch, Chairman and CEO of AirBoss. “Our pedigree as a leading survivability solutions provider with global supply chain and logistics management expertise coupled with our decades long experience in providing PPE to government agencies, will continue to put AirBoss in a position to support urgent needs across many of our product lines.”
Nitrile rubber gloves are in continuous demand by many agencies within the federal government. The gloves to be provided by ADG are for nonsurgical purposes, for use in hospitals and other health care settings. The contract and delivery timeline recognizes the urgency and priority HHS is assigning to increasing the supply of personal protective equipment (“PPE”) held in ASPR’s Strategic National Stockpile (“SNS”) to supplement state and local medical supplies and equipment during public health emergencies. The supplies, medicines, and devices for lifesaving care contained in the SNS can be used as a short-term, stopgap buffer when the immediate supply of these materials may not be available or sufficient.
This contract is yet another acknowledgment that ADG is a leading domestic supplier of survivability and protective solutions. Over the past year, ADG has delivered, on time and on budget, to HHS, FEMA and the VA, an aggregate of 150,000 of its proprietary powered air-purifying respirator (PAPR) systems, more than 3.6 million PAPR filters, and related accessories including spare protective hoods. ADG is a survivability company that provides military, law enforcement, medical providers, industrial providers and first responders with a diverse portfolio of protective equipment that spans the entire survivability spectrum. Its emergency response and PPE is utilized by the U.S. Department of State, Federal Emergency Management Agency and Centres for Disease Control and Prevention, and it has provided PPE to emergency first response teams and hospitals across the U.S., as well as more than 30 countries worldwide.
AirBoss of America is a leading and diversified developer, manufacturer and provider of innovative survivability solutions, advanced custom rubber compounds and finished rubber products that are designed to outperform in the most challenging environments. Founded in 1989, the company operates through three divisions. AirBoss Defense Group is a global leader in personal and respiratory protective equipment and technology for the defense, healthcare, medical and first responder communities. AirBoss Rubber Solutions is a top-tier North American custom rubber compounder with 500 million turn pounds of annual capacity. AirBoss Engineered Products is a supplier of innovative anti-vibration solutions to the North American automotive market and other sectors. The Company’s shares trade on the TSX under the symbol BOS. Visit www.airboss.com for more information.
Investor Contact: Chris Bitsakakis, President, Gren Schoch, Chairman and CEO at 905-751-1188
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Statements containing forward-looking information are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward-looking information involves known and unknown contingencies, uncertainties and other risks that may cause AirBoss’ actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by the forward-looking information. Numerous factors could cause actual results to differ materially from those in the forward-looking information, including without limitation: impact of general economic conditions notably including its impact on demand for rubber solutions and products; dependence on key customers; global defense budgets, notably in the Company’s target markets, and success of the Company in obtaining new or extended defense contracts; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss’ ability to maintain existing customers or develop new customers in light of increased competition; AirBoss’ ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof; changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws and potential litigation; ability to obtain financing on acceptable terms; environmental damage and non-compliance with environmental laws and regulations; impact of global health situations; potential product liability and warranty claims and equipment malfunction. COVID-19 could also negatively impact the Company’s operations and financial results in future periods. There is increased uncertainty associated with future operating assumptions and expectations as compared to prior periods. As such, it is not possible to estimate the impacts COVID-19 will have on the Company’s financial position or results of operations in future periods. While the direct impacts of COVID-19 are not determinable at this time, the Company has a credit facility as at December 31, 2020 that can provide financing up to US$60,000,000. This list is not exhaustive of the factors that may affect any of AirBoss’ forward-looking information. All of the forward-looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward-looking information.
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