Acquisition

RNS Number : 2749V

Avon Rubber PLC

06 August 2015

 

Strictly embargoed until 07:00 Thursday 6^th August 2015

AVON RUBBER p.l.c. ("Avon"or the "Group")

Dairy division Acquisition

Avon is pleased to announce that its wholly owned subsidiary, Avon Rubber Italia S.r.l., has acquired 100% of the share capital and shareholder loan notes of InterPuls S.p.A. ('InterPuls') (the 'Acquisition'), for an enterprise value of €29.75m, including the assumption of InterPuls' net debt of approximately €4.0m. The cash consideration of €25.75m was paid on completion and was funded from existing Group cash balances and existing debt facilities.

Established in 1974 and located in Albinea, in the Province of Regio Emilia between Parma and Bologna, InterPuls is a private family owned company incorporated in Italy. InterPuls has developed a unique range of specialist milking components, including pulsators, milk meters, automatic cluster removers and vacuum pumps, enabling customers throughout the world to configure state of the art milking systems. In addition to traditional milking components, InterPuls is expanding into high-technology sensors and devices to monitor the life cycle of a cow, analysing milk production, reproduction and health data to provide critical management information to increase operational efficiency of the farm. Following the acquisition its products will be sold under the new "Milkrite-InterPuls" brand, which will be positioned as a leading provider of milking point technology, providing complete teat to pipeline solutions for the Dairy sector.

The latest audited financial statements of InterPuls, prepared as at 31 December 2014, showed gross assets of €17.0m, Net Assets of €10.0m (both adjusted to remove Goodwill and Shareholder loans) and Revenue of €15.1m, Earnings before Tax, Interest, Depreciation and Amortisation ('EBITDA') of €3.1m and Profit before Tax (adjusted to exclude the amortisation of goodwill charged under Italian GAAP) of €2.3m for the year then ending.   

Avon expects the acquisition to be significantly earnings enhancing in its 2016 financial year.

The Acquisition will broaden Avon's product range, client base and geographic reach, while the integration of Avon and InterPuls products into each company's distributor base will provide enhanced commercial growth opportunities in future years.

Mr Gabriele Nicolini, General Manager, shareholder and Director of InterPuls prior to this transaction, has entered a new employment agreement with InterPuls and committed to the business for a period of three years.

Commenting, Peter Slabbert, Chief Executive, said "This is an important and strategic acquisition for our Dairy Division. InterPuls has developed a product portfolio of high tech milking components, telemetry and software to improve milking performance & efficiency, which complements the current Milkrite products. InterPuls significantly expands our dairy expertise, positioning us as the milking point experts, and through Milkrite-InterPuls we shall create a significant global brand with enhanced geographic growth opportunities for the future."

For further enquiries, please contact:

Avon Rubber p.l.c.
Peter Slabbert, Chief Executive	01225 896831
Andrew Lewis, Group Finance Director	01225 896830
Sarah Matthews-DeMers, Group Financial Controller	01225 896835
Weber Shandwick Financial
Nick Oborne	020 7067 0700

Note to editors: The Group has transformed itself over recent years into an innovative design and engineering group specialising in two core markets, Protection & Defence and Dairy. With a strong emphasis on research and development we design, test and manufacture specialist products from a number of sites in the US and UK, serving markets around the world. We achieve this through nurturing the talent and aspirations of our employees to realise their highest potential.

Avon Protection is the recognised global market leader in advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection systems technology for the world's military, homeland security, first responder, fire and industrial markets. With an unrivalled pedigree in mask design dating back to the 1920's, Avon Protection's advanced products are the first choice for Personal Protective Equipment (PPE) users worldwide and are placed at the heart of many international defence and tactical PPE deployment strategies. Our expanding global customer base now includes military forces, civil and first line defence troops, emergency service teams and industrial, marine, mineral and oil extraction site personnel. All put their trust in Avon's advanced respiratory solutions to shield them from every possible threat.

Our world-leading Dairy business and its Milkrite brand have a global market presence. With a long history of manufacturing liners and tubing for the dairy industry, Milkrite has become the leading innovator and designer for products and services right at the heart of milking. Our goal is always to improve and maintain animal health. Working with the leading scientists and health specialists in the global dairy industry we continue to invest in technology to further improve the milking process and animal welfare. Our products provide exceptional results for both the animal and the milker, making the milk extraction process run smoothly. As our market share and milking experience continue to grow, so does our global presence.

For further information please visit the Group's website www.avon-rubber.com

 

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