British defence equipment manufacturer Avon Technologies has clinched a significant $18 million order from the US military for combat helmets. The company’s Ohio-based subsidiary, Team Wendy, secured the contract from the US Defense Logistics Agency as part of the army’s “next generation” head protection programme.
The organisation, which currently supplies gas masks to the UK military and underwater rebreathers to the German navy, saw its shares rise 1.9 per cent to £14.90 on the London Stock Exchange following the announcement. This latest surge contributes to an impressive share price increase of more than 50 per cent throughout 2024.
Jos Sclater, Avon’s chief executive, expressed optimism about the contract, stating: “We continue to see good levels of demand for Team Wendy’s head protection systems from the US Department of Defense. We look forward to continuing our support to the US military with this vital, lifesaving, protection equipment.”
Team Wendy, acquired by Avon for $130 million in 2020, specialises in anti-ballistic and brain injury mitigation headgear. The company’s journey began in 1997 when Dan Moore founded it following his daughter Wendy’s tragic death from a skiing-related brain injury. Initially focused on winter sports protection, the firm has evolved to become a key supplier for armed forces, search and rescue operations, and law enforcement.
The timing of this contract is particularly noteworthy, coming weeks before Donald Trump’s presidential inauguration. Despite defence companies experiencing recent market volatility due to concerns over potential budget cuts, the sector witnessed substantial growth in 2024 amid escalating international tensions. The US Department of Defense reported a significant budget increase to $1.99 trillion in the 2024 financial year, representing a 30 per cent rise from the previous period.
This development aligns with broader industry trends, as various nations boost their defence spending. Recent months have seen Israel, Taiwan, and several NATO countries securing substantial arms deals, reflecting growing global security concerns and the strategic importance of military equipment manufacturers in the current geopolitical landscape.
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