By Calvin Biesecker
The O’Gara Group, a security firm specializing in night vision equipment, training services, and armored vehicles for civil markets, last Friday filed plans with the Securities and Exchange Commission for an initial public offering (IPO) of common stock that would raise $150 million.
Just about all of the proceeds from the IPO would be used to fund three pending acquisitions that would significantly boost the company’s sales and provide most of its business from international customers. O’Gara’s prospectus did not say how many shares would be offered and at what price.
The O’Gara Group was quietly formed five years ago to acquire a small firm specializing in the design and manufacture of night vision equipment (Defense Daily, July 7, 2004). However, the company’s founders have over two decades of experience in the security, safety and defense markets, including management at one time of the business unit that manufactured up-armored Humvees for the United States military. In 2001 that division was sold to Armor Holdings, which was acquired by Britain’s BAE Systems in 2007.
O’Gara’s sales last year were $38.3 million and the company posted a $1.4 million loss. If sales from the three companies are included in O’Gara’s revenues last year, the company’s pro forma sales were $179.9 million.
O’Gara currently operates in three business segments: Advanced Transparent and Mobile Systems; Sensor Systems; and Training and Services. Sensor Systems, which includes the company’s night vision businesses, is currently the sales leader with $24.7 million last year.
If the IPO goes through, the Advanced Transparent and Mobile Systems segment would benefit significantly. That’s because two of the pending acquisitions, Italy-based Isoclima, and Mexico-based TPS Armoring, design and manufacture armor for various commercial and government customers. The third deal for Pennsylvania-based OmniTech, would boost O’Gara’s capabilities in optoelectronics for its Sensor Systems segment.
If the acquisitions go through, most of O’Gara’s business will shift from the U.S. defense and security services market, primarily serving the U.S. government, to a stronger mix of international and commercial business.