Avon Rubber sells auto ops May 23, 2006
Avon Rubber, the UK rubber manufacturer, is to sell its US automotive division for GBP63 million.
Senior managers at Avon Rubber’s automotive group, backed by Red Diamond Capital, a private equity firm based in New York, are to lead the buyout, which is expected to be completed within three weeks.
With annual revenue of approximately $349 million (E280 million, GBP188 million), Avon’s automotive unit is a leading global supplier of low-pressure hoses for air induction, fuel and coolant systems, as well as vibration-management products.
Commenting on the disposal, Trevor Bonner, chairman of Avon Rubber, said: ?The disposal signals a significant strategic advance for the group, allowing Avon Rubber to focus on the high growth potential the board has identified for the group?s respiratory protection products.
“Avon Rubber will continue to develop its strong market positions in dairy, aerosol gaskets and engineered fabrications. This combination of established businesses and growth opportunities provides a balanced portfolio of business activities for the future,” he continued.
Avon Automotive has more than 3,500 employees and operates 12 manufacturing facilities located in the US, the UK, Mexico, France, Spain, Portugal, the Czech Republic, India and Turkey. The division serves the automotive, heavy truck, small engine, and recreational vehicle industries. Its headquarters are in Cadillac, Michigan.
Cash proceeds from sale will be used, in the first instance, to reduce debt.
- Posted in : Uncategorized
- Author : arnold
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