VANCOUVER, British Columbia, May 06, 2019 (GLOBE NEWSWIRE) — Mission Ready Solutions Inc. (“Mission Ready” or the “Company”) (TSXV: MRS) is pleased to announce that it has received – through its wholly-owned subsidiary, Unifire, Inc. (“Unifire”) – USD$7MM in new orders since April 1, 2019. The Company also wishes to provide guidance and insights into its post-acquisition strategic plans to grow the Company and create shareholder value.
Unifire Acquisition Recap
On July 31, 2018, Mission Ready announced its intention to acquire 100% of the Unifire business (the “Acquisition”) and concurrently announced that it had received a term sheet for a USD$20MM revolving supplier credit facility (the “Credit Facility”). On April 23, 2019, the Company announced that it had finalized the Acquisition and secured the Credit Facility following extensive due diligence and integration efforts as referenced in intermediate news releases dated August 7, 2018, November 9, 2018, December 6, 2018, February 12, 2019, and March 8, 2019.
During the Acquisition process, on March 7, 2019, Unifire was awarded a bridge contract (the “SOE Bridge”) with the Defense Logistics Agency (“DLA”) to extend its current Tailored Logistics Services (“TLS”) Special Operations Equipment (“SOE”) contract for an additional year with the new expiration date being March 6, 2020. The SOE Bridge Contract – carrying a maximum dollar value of USD$4 billion – was awarded to the six incumbent TLS SOE contract holders, including Unifire, and continues coverage of the full line of SOE and incidental services under the DLA Troop Support SOE TLS program. Additional information on the SOE Bridge Contract can be viewed at the following link:
Post-Merger Plans and Operations
From June 1 – September 30, the peak period leading up to the Government year-end, Mission Ready will utilize all available resources, leveraging the expanded response capacity of the combined teams and the Company’s capital resources, to maximize the contract awards it receives on the SOE Bridge and other contracts in which Unifire participates.
During the acquisition process, Mission Ready management identified a number of opportunities to reduce Unifire’s overhead and increase efficiency through the automation of previously time-consuming processes, and the immediate implementation of a leading Customer-relationship Management (CRM) solution with integrated Enterprise resource planning (ERP) functionality. The Mission Ready team has begun the implementation and integration processes and are working diligently to put these systems in place without interrupting the Company’s readiness to respond to solicitations and fulfill contract awards.
Unifire’s current leadership will be integrated into the Company’s existing management structure and will be joined by additional senior-level personnel and multiple US-based outside sale representatives to be engaged in 2019.
“I am thrilled to now be a part of the Mission Ready group of companies and am excited for the tremendous and sustainable opportunities for growth created by the combination of the two companies,” states Dan Raczykowski, Chief Operating Officer of Unifire. “I am proud of what we have been able to build since Unifire was started over 30 years ago and look forward to building on the Unifire legacy, reaching new heights and, in turn, creating shareholder value.”
Jeffery Schwartz, President & CEO of Mission Ready states, “This Acquisition is transformative for Mission Ready and delineates the Company as not only an experienced manufacturer and distributor but also a seasoned government contractor with invaluable industry relationships forged over the past 30 years. We would like to extend our sincere appreciation to all involved in the successful completion of the Acquisition and to the many patient shareholders who have stood by us throughout the process. We would also like to recognize Darrell Siria and Dan Raczykowski – Unifire’s former principals – for their confidence in Mission Ready to move their vision forward. Both Darrell and Dan have truly demonstrated their commitment and belief in the prosperous future of the Company in many ways, one of which being their consent to the incremental escrowed release of the equity portion of the consideration payable to each of them by Mission Ready.”
TLS Contract FAQ Recap | Mission Ready’s Strategic Advantage
Who is the Defense Logistics Agency?
The Defense Logistics Agency is a combat support agency in the United States Department of Defense with more than 26,000 civilian and military personnel throughout the world.
What are TLS programs?
DLA TLS programs – administered by DLA Troop Support – provide authorized Department of Defense, Federal Government and other government customers with streamlined procurement solutions via a standing contract with six approved commercial vendors. Unifire is one of the six approved vendors.
There are two major TLS contracts issued by the DLA Troop Support – Construction & Equipment office that are set aside for small business; Special Operations Equipment and Fire & Emergency Services Equipment. The SOE and FESE TLS programs enable customers to order commercial, off-the-shelf part numbered items within the scope of the program.
What does the finalized acquisition of Unifire mean for Mission Ready?
- Improved cash flow
- Immediate access to highly valuable distribution channels for its tech-centric product portfolio
- Goodwill value from 30 years of contract past-performance
- Addition of skilled and experienced personnel with well-established relationships with key decisions makers in the defense industry
How will the merger of Unifire into Mission Ready help to grow the Unifire business?
Historically, as one of six authorized TLS contract holders, Unifire has been limited in its ability to secure the initial capital required to facilitate many of the larger solicitations. Mission Ready has identified sources of capital that will enable Unifire to pursue TLS solicitation opportunities on a much larger scale than they have been able to at any point in their 30-year history, thereby creating immediate and significant growth potential.
During the acquisition process, Mission Ready identified an opportunity for considerable and rapid grow of the Unifire business which was restrained by limited access to capital. Unifire’s solicitation readiness has typically been limited to aggregate outstanding bids not exceeding, on average, approximately USD$2MM per month. Mission Ready’s access to scalable operating lines – with an immediate availability of minimum USD$20MM – will allow the Company to capture business that would not otherwise have been possible.