Specialist defence investment firm Operating Partners Group (OPG) has taken ownership of Allen-Vanguard. The deal ends a receivership that put one of Canada’s longest-running counter-IED companies under court supervision.

OPG’s portfolio includes electronic warfare businesses across Europe. The firm said Allen-Vanguard will complement those companies and expand its force protection capability worldwide.

Allen-Vanguard builds radio frequency systems that defeat radio-controlled improvised explosive devices, along with counter-drone products and electronic warfare sensors. It has operated in Ottawa since 1981 and has an engineering site in Tewkesbury, England.

Court-approved sale

The Ontario Superior Court approved the transaction on Sept. 25. The court’s approval and vesting order backed a subscription agreement between PwC, as receiver, and a purchaser named Allen Vanguard International Limited. The agreement was dated Sept. 9 and amended Sept. 17.

Under the order, the assets, contracts and liabilities excluded from the deal moved to a separate numbered company, 1001752237 Ontario Inc., which was added to the receivership. A second order lets PwC distribute the net proceeds to the lenders that applied for the receivership once the deal closes, after holding back a reserve to finish administering the file.

The purchase price has not been disclosed. The court sealed the confidential appendices to the receiver’s first report.

How it got here

The court appointed PwC as receiver on Sept. 1, on an application by lenders Contego AV Funding II and Contego AV Funding II-A. The lenders were owed about US$80.3 million in secured debt after years of declining sales.

Court filings later showed the company owed $124 million against roughly $5 million in assets, Vanguard reported in September.

The company had been looking for a buyer since August 2023. Three rounds of outreach through investment bank Seabury Capital Group contacted more than 50 potential buyers but produced no deal before the receivership.

Allen-Vanguard blamed three factors in its filings: the drawdown of allied forces from the Middle East in the mid-2010s, pandemic supply disruptions, and U.S. State Department funding cuts. It had about 50 full-time employees in Canada and Britain as of late July.

What they’re saying

Bobby Strawbridge, president of Allen-Vanguard, said the company’s employees, customers and suppliers stood by it during the process.

“Unfortunately, recent months have taken us through an unavoidable and difficult receivership process,” Strawbridge said. “Looking to the future, I am pleased to report that we have secured new owners willing and able to invest in the long-term growth of the business.”

Miles Graham, founder and managing director of OPG, said the firm sees a fit between Allen-Vanguard’s radio frequency work and current operational demands.

“We see clear synergy with the agility and RF capability required to meet current operational demands and also see a real opportunity to bring IP and capabilities from across our existing businesses to Canada and global markets,” Graham said.

New direction

OPG said its backing will help Allen-Vanguard build on its force protection business and expand into adjacent areas, such as signals intelligence.

The company recently began deploying its SP3 transceiver, which it said will lead to a wider range of electronic warfare sensors. Allen-Vanguard’s customers include NATO nations, aid agencies, governments and non-governmental organizations.

Graham has more than 30 years of experience in government, consulting at McKinsey and private equity, according to the release.

OPG did not say whether Allen-Vanguard will keep its current staff and both sites, or how much it plans to invest.