Rocky Brands Inc. on Thursday announced that it has received a purchase agreement from the Defense Logistics Agency to produce general purpose safety boots for the United States Navy.
Under the terms of the purchase agreement, the Defense Logistics Agency has the right to purchase approximately $27 million of these boots through May 2022. The first shipment from this agreement is expected to occur in the third quarter of 2019. All of these boots will be manufactured in the company’s factory in Moca, Puerto Rico.
Jason Brooks, CEO, said, “We are very pleased to have been awarded this contract to produce safety boots for the U.S. Navy. This order is on top of our existing agreements and will add approximately $2 million in incremental military segment sales this calendar year. Importantly, with the increased operating efficiencies in our company-operated manufacturing facility from the growth in our commercial military business, we expect gross margins for this most recent contract to be in-line with recent segment trends.”
