Avon Rubber to buy 3M's ballistic protection business
Avon Rubber has agreed to buy 3M's ballistic protection business and the rights to its Ceradyne brand, which makes advanced technical ceramics, for up to $116m.
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Under the terms of the deal, Avon will pay an initial $91m (£75m) in cash, with a further contingent cash consideration of up to $25m (£21m) payable depending on the outcome of pending tenders.
Chief executive Paul McDonald said the combination of 3M's ballistic protection business and its own protection unit "will significantly strengthen our technology and our personal protection product offering to an enlarged customer base, thereby accelerating the long-term growth prospects for the group".
"We believe that incorporating the business into the Avon protection portfolio will allow the business to expand more rapidly into rest of world military and law enforcement markets providing sustainable value creation for customers and shareholders," he added.
Avon also provided a very brief update on trading, which it said had been in line with its expectations in the second half.
"The board therefore remains confident of achieving its current year expectations."
At 1535 BST, Avon shares were up 13% at 1,500p.