Protective Products’ Strategic Review
The founder has resigned from the board as the body armor company eyes its strategic options.
June 23, 2009
As transactions in the security sector continue to chug on, one security company hopes the sector's recent activity will prove a boon to its struggling business.
Following the resignation of Sunrise, Florida-based Protective Products of America’s former chief executive officer from the board of directors, the protective body armor maker is pursuing a strategic review of the company.
Stephen Giordanella founded Protective Products in 1992 and was chairman and CEO of the company until May 2006, then was a director at the body armor manufacturer from September 2006 until March 2009.
A representative for Protective Products declined to comment on Giordanella’s resignation or the likelihood of a sale. She said specifics or time frame have not been decided. The maker of body armor for police and military personnel hired Farlie Turner & Co. to pursue strategic alternatives.
Last week, firearms maker Smith & Wesson acquired Universal Safety Response, Inc., a homeland security company, for about $26.2 million in cash and 9.7 million shares of stock. In speaking with MergersUnleashed following the transaction, Smith & Wesson’s chief financial officer William F. Spengler said sales to law enforcement agencies “has been a part of the core strategy for a couple years.”
In March, Alliant Techsystems acquired Eagle Industries, a maker of tactical accessories for the military, law enforcement and recreational markets, for about $100 million.
As of press time, Protective Products stock traded at $0.42 per share.
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