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Debt relief in buyout

Posted 3949 days ago by OttWatch in category Company News with 0 Comments 

OTTAWA – Debt-shaken Allen-Vanguard agrees to be acquired by Toronto-headquartered Tailwind Financial Inc., which specializes in buyout financing, in an all-stock deal. The maker of blast suits and roadside-bomb jamming gear will swap about $40 million in shares – almost double its market value – for Tailwind stock. In the process it will relieve its load of roughly $200 million in debt resulting, in part, from delayed US orders and integration woes after purchasing Ottawa-based competitor Med-Eng. If approved by Allen-Vanguard shareholders, the merger will close in mid-April and the company will become a wholly owned indirect unit of Tailwind. The company would continue to operate in Ottawa under its own name.