Rafael Advanced Defense Systems Ltd. has completed the acquisition of PVP Advanced EO Systems, Inc. (PVP AEO) through its U.S. subsidiary Rafael USA, Inc.
The acquisition was executed under a stock purchase agreement (SPA) transferring 100% of stock to Rafael USA, Inc. The transaction was approved under CFIUS review authorization, governed by a national security agreement (NSA).
Prior to the acquisition, PVP AEO was a privately-owned, California-based company, specializing in the development, manufacturing and sustainment of world-class electro-optic (EO) systems for air, land, sea and critical homeland security applications. The company was founded in 1997 and is located in Tustin, CA. Recent programs include Integrated Fixed Towers (IFT) and Mobile Video Surveillance Systems (MVSS) for the Customs and Border Patrol on the southern border. PVP AEO is active in North and South America, Asia and the Middle East.
“This acquisition is part of RAFAEL’s continued strategic investments, with the purpose of transferring cutting-edge state-of-the-art technologies, products and systems into the United States in support of U.S. national security”, says M.G (ret.) Yoav Har Even, RAFAEL’S President and CEO. “Until recently most of RAFAEL’s operations in the U.S. were in partnership with U.S. Tier-1 prime contractors, while the majority of workshare was manufactured in Israel. PVP AEO will complement and enhance engineering and manufacturing capabilities stateside, while strengthening our U.S. supply chain to better support our prime contractors and U.S. warfighters.”
“PVP AEO is committed to continue supporting its existing and emerging customers. This acquisition provides the opportunity to enhance and create new products and capabilities. For PVP AEO employees and families, this venture means stability, growth and well-being. It will create more jobs for PVP AEO, as well as for its nation-wide supply chain” says Bruce Ferguson, PVP AEO President and CEO. “PVP AEO retains its identity, brand, products, technologies, services, personnel, culture, management and charitable community giving.”
The acquisition of PVP AEO continues a large period of growth for Rafael USA, which includes: the standing of RSGS, a subsidiary that received its classified clearance earlier this year; the expansion of its C4ATS manufacturing subsidiary, which specializes in assembly and procurement; and R2S a Joint Venture with Raytheon Technologies specializing in manufacturing and testing.
“This is an exciting time for RAFAEL in the U.S. In recent years we have seen increased U.S. customer interest and growth in sales. We are excited to match that with an increase in our U.S. industrial base to support customers and create U.S. jobs,” said Azarel Ram, President and CEO of Rafael USA Inc. “The acquisition of PVP Advanced EO Systems represents a major step in our growth process that will help ensure we can both meet customer needs as well as increase our U.S. manufacturing footprint for sales to the U.S., Israel, and other allies.”