Hexcel sheds bulletproof vest division

Hexcel Corp. found a buyer for its Kevlar ballistics division, with JPS Industries Inc. paying $62.5 million up front and possibly up to $12.5 million more depending on future sales.
The unit produces high-strength yarn and fabric for bulletproof vests and other body armor, also selling products under the brand names Spectra and Twaron. For the 12-month period ending in May, ballistics sales were $96 million; the overall division”™s 2006 sales were $144 million, including materials sold for use in electronics and industrial reinforcement applications.
Stamford-based Hexcel retains liabilities associated with U.S. Department of Justice (DOJ) allegations it sold defective fabric for use in ballistic vests, after a California policeman”™s death was blamed on a rapid degradation of the material. Earlier this year, prosecutors stated they had sufficient grounds to file a civil case under the False Claims Act against the company and two employees. Hexcel said it disagrees with the DOJ but is cooperating with investigators.
Hexcel retains its composite materials and engineered materials business that makes materials for a range of products, including helicopter and wind turbine blades, aircraft wings, skis and computer housings. The company”™s two largest customers are Boeing Co. and European Aeronautic Defence and Space Co. In the first quarter, Hexcel had a $23.5 million profit on sales of $329 million.
JPS is based in Greenville, S.C., and has facilities in Easthampton, Mass., and Bristol, N.H. The company produces plastics, composites and glass laminates for a range of applications, including floating oil booms, athletic shoes, plasma screens and stadium roofs.
JPS takes over Hexcel facilities in Anderson, S.C., and Statesville, N.C., that employ 480 people.
Last December, Hexcel sold for $22 million a separate joint venture in Anderson that produces reinforced materials used for roofing materials and sail cloth. In February, Hexcel sold for $25 million its architectural division in France that produces translucent solar windows and blinds.
As of Jan. 31, Hexcel had 4,460 employees.
In separate Hexcel news, the company temporarily shut down a fiber-manufacturing line following a fire at a facility near Salt Lake City.