Rafael acquires California's electro-optics systems maker PVP for about $ 50 million

Rafael has recently completed an acquisition of California's electro-optics systems maker PVP as part of a move to strengthen its U.S. manufacturing infrastructure. The deal is valued at about $ 50 million and has been approved by the Israel Companies Authority and U.S. regulators.
The company has in recent years recorded sales successes for the US defense establishment, such as a deal to sell windbreaker systems to protect US Army Abraham tanks for half a billion dollars, two Iron Dome batteries for 393 million dollars, Spike NLOS missiles for the US military and special forces in $ 60 million, and has sold over the years to the U.S. Air Force, Navy and Marines hundreds of Lightning Armament Foods in the cumulative amount of hundreds of millions of dollars.
But Rafael is still more dependent on IAI and Elbit on orders from the Ministry of Defense in Israel, and exports only about 50% of its products, compared to more than 70% in Elbit and IAI.
PVP was established in 1974 as a provider of video systems to the civilian market, but in 1997 shifted its focus to the defense market and became a provider of major US manufacturers in the field of electro-optics, including laser and night vision systems. The company employs 70 people, and Rafael plans to expand.
The company will operate as part of Rafael USA, which already owns three other subsidiaries, C4ATS in Orlando, RSGS in Orlando which is wholly owned, and R2S in partnership with American Raytheon. Raphael already has hundreds of employees in a direct deal in the US, and thousands on top of the first.
"This is the first time we are acquiring an existing manufacturing company in the United States, and one that also has development capabilities," explains Yuval Miller, head of the Air and Intelligence Division at Raphael. "So we want to expand our independent operations there, in addition to joint activities with Raytheon, Boeing, Lockheed Martin and Northrop Grumman."
The acquisition will allow Rafael to enter the more sensitive area of ​​manufacturing classified systems for the U.S. defense system. Miller: "Raphael has sold its flagship products in the U.S. to date, but the U.S. defense establishment also needs local production, complete control over the production of sensitive components as well, the ability to make classified changes that we will not be fully exposed to."