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Pacific Safety sale called off

Canadian body armour maker Pacific Safety Products Inc. says a proposed sale of all its assets to Sun Capital Partners has been called off.


March 6, 2012
by CANADIAN PRESS

ARNPRIOR, Ont.: Canadian body armour maker Pacific Safety Products Inc. says a proposed sale of all its assets to Sun Capital Partners has been called off.

The Ottawa-area company makes advanced armour and personal protection equipment for the military and police.

It had been holding exclusive negotiations with Sun Capital under a letter of intent announced Jan. 23. The company didn’t say why the talks with Sun Capital ended.

According to its latest financial report, the company has been losing money as its revenues decline.

In the six months ended Dec. 31, it posted a loss of about $1.5 million – most of it incurred in PSP’s fiscal second quarter – with $7.1 million in revenue.

In the first half of fiscal 2011, revenue was $9.4 million and the loss was $1.1 million, when it had fewer shares outstanding.

© 2012 The Canadian Press