Allen-Vanguard acquires Med-Eng Systems from Schroders & Associates, GrowthWorks Capital

Bomb disposal equipment maker Allen-Vanguard Corp yesterday announced that it would acquire privately held Canadian bomb protection specialist Med-Eng Systems Inc for C$600 million ($568.2 million) or a little over six times the acquired firm's Ebitda.

The transaction comes after a limited auction of Med-Eng by the owners and is expected to close by the end of August.

Med-Eng's principal owners are Montreal-based private equity firm Schroders & Associates Canada Inc, Toronto's venture and private equity investor GrowthWorks Capital Ltd and an individual shareholder.

The acquisition would catapult Ottawa-based Allen-Vanguard the global leader in the anti-terrorism industry. Allen-Vanguard makes security and military equipment, while privately held Med-Eng supplies bomb protection suits, body armour and electronic counter-measure to jam remote-detonated bombs to US, Canadian and Australian armed forces.

Allen-Vanguard said the companies' NATO military relationships gives the combined firm "a distinct advantage of market access in the prime markets of the United States and Europe."