UK’s
Avon Rubber is to acquire 3M’s ballistic-protection business and the
rights to the Ceradyne brand for a sum of US$126 million
The deal
included an initial cash amount of US$126 million and a further
contingent cash consideration of up to US$25 million will be payable
depending on the outcome of pending tenders.
Operating primarily from three sites in the US with approximately 280 employees, 3M’s ballistic-protection business is a provider of armour solutions, including ballistic helmets and body armour for law enforcement.
In the year ended 31 December 2018, the business delivered revenue of US$85.4 million and earnings (EBITDA ) of US$10.8 million.
Avon Rubber said it expected recurring annual net cost synergies of approximately US$5 million to be delivered in the first full year of ownership from integrating Information Technology systems and back office functions.
The acquisition is expected to close in the first half of the Avon’s 2020 financial year, subject to US regulatory approvals and customary closing conditions.
Avon Rubber said the deal will significantly widen its product range in the personal protective equipment segment with a leading brand for next generation ballistic helmets and body armour; as well as expand its presence in the US market.