The announcement follows BAE Systems’ decision last month to end military production at its 200,000-square-foot facility on Le Saint Drive and to transfer about 160 jobs to Sealy, Texas.
This will be the second time The O’Gara Group has purchased the operations, according to company president and CEO Bill O’Gara.
The O’Gara Group operated the armored vehicle manufacturer as O’Gara-Hess & Eisenhardt Armoring Company from 1982 to 2001. The company was sold to Armor Holdings Inc. in 2001 and purchased by BAE in 2007.
“It’s a great opportunity for us and we’re thrilled to be buying our old company back,” said O’Gara, who added the facility will operate again as O’Gara-Hess & Eisenhardt Armoring Company.
About 134 employees currently work for the Commercial Armored Vehicles business, according to Serkhoshian.
“We anticipate that a number of these employees will be retained by The O’Gara Group,” she said.
Fifteen employees based at O’Gara’s current Fairfield location will be combined into the operations in West Chester Twp., according to O’Gara.
“We will have a little over 100 employees,” O’Gara said. “It’s a significant acquisition for us and gives us a fair amount of critical mass.”
The O’Gara Group will take over a “majority” of BAE’s 134 commercial employees, he said, and will continue to produce vehicles for both government and commercial customers as well as transparent armor for commercial and military markets.
O’Gara said he hopes to be in the space before the holidays. He said he first contacted BAE officials about a year ago to inquire about selling the facility.
O’Gara said a main focus of Commercial Armored Vehicles LLC has been on production for the U.S. Armed Forces. While that will continue, O’Gara said the company will continue to expand international relations.
“Historically, we’ve had a global footprint and manufacturers around the world,” O’Gara said. “We will be promoting our product in the international market.”
In recent years, BAE has laid off hundreds of workers as its contracts have expired and defense spending cuts have grown. In 2007, BAE employed about 1,500 at its West Chester Twp. facility. The number of employees will dip from 294 to 134 from November to April as the company moves its military production to Texas.
The trend in military spending doesn’t bode well for military production. The U.S. Defense Department has been told to cut $487 billion from planned spending over the next 10 years, starting next year.
The military production contracts approaching completion will be finished at the West Chester Twp. location before the site closes, according to Serkhoshian.
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