Business
Acquisition of 3M's Ballistic-Protection Business
Acquisition of 3M's Ballistic-Protection Business.
About this update from Avon Technologies Plc
[{"type":"text","content":"\n \nRNS Number : 1628I Avon Rubber PLC 07 August 2019 \n\n7 August 2019\nAvon Rubber p.l.c.\n(\"Avon Rubber\", the \"Company\" or the \"Group\")\nAgreement to acquire 3M's Ballistic-Protection Business \nAvon Rubber is pleased to announce that it has signed an agreement to acquire 3M's ballistic-protection business (the \"Business\") and the rights to the Ceradyne brand for an initial cash consideration of approximately $91m (£75m) (the \"Acquisition\"), subject to closing and customary adjustments. A further contingent cash consideration of up to $25m (£21m) is payable depending on the outcome of pending tenders.\n \nHighlights\n \n· The Board believes that the Acquisition represents a very attractive opportunity in line with our strategy and that the core strengths of the Business are closely aligned with those of the Group:\n \no A leader in critical personal protective equipment, with strong brand recognition and established positions with the U.S. Department of Defense (\"U.S. DOD\"), Rest of World Military and Law Enforcement customers;\n \no Track record of profitable revenue growth with a financial profile which is consistent with the Group's medium-term objectives; \n \no Visibility underpinned by existing, secured U.S. DOD contracts for next generation ballistic helmets and body armour;\n \no Significant organic growth opportunities through new product development and broadening of the Rest of World Military and Law Enforcement customer base; \n \no Strong and capable management team, who will remain with the business;\n \no Excellent research and development capabilities with ongoing, customer funded programmes for next generation ballistic helmets and body armour, and a history of successful new product innovation and launches; and\n \no Integrated and well invested manufacturing facilities with existing capacity to scale production.\n \n· Operating primarily from three sites in the U.S. with approximately 280 employees, the Business is a leading provider of next generation armour solutions, including ballistic helmets and body armour, and is a trusted supplier to U.S. and Rest of World Military and Law Enforcement customers.\n \n· In the year ended 31 Dece...