Avon Rubber (AVON)

Sector:

Defense and Aeronautics

Index:

FTSE 250

2,664.00p
   
  • Change Today:
    -36.00p
  • 52 Week High: 4,625.00p
  • 52 Week Low: 2,660.18p
  • Currency: UK Pounds
  • Shares Issued: 31.02m
  • Volume: 118,536
  • Market Cap: £826.46m
  • RiskGrade: 186

Avon Rubber sells Milkrite business to DeLaval

By Josh White

Date: Thursday 02 Jul 2020

LONDON (ShareCast) - (Sharecast News) - Avon Rubber has signed an agreement to sell its 'Milkrite InterPuls' business to DeLaval Holding, it announced on Thursday, for a cash consideration of £180m on a cash and debt free basis.
The FTSE 250 company said the consideration would be payable at completion, subject to customary adjustments, with the transaction itself subject to closing conditions and regulatory approvals, with completion expected to take place in the first quarter of its 2021 financial year.

Post tax and transaction costs, Avon Rubber said it was expecting to receive net proceeds before adjustments of about £160m.

The group said it had agreed with the trustees of its UK pension scheme to make a one-time contribution of £20m, to strengthen the scheme's funding position following completion.

It said the remaining proceeds would be used to strengthen its balance sheet, as the company continued to target value-enhancing acquisitions to support the growth of its Avon Protection business.

Avon's board described Milkrite InterPuls as a "global leader" in milking point solutions for dairy farmers, which had been a growing and profitable business for the firm over a number of years.

In the financial year ended 30 September 2019, Milkrite InterPuls generated revenue of £50.9m, adjusted EBITDA of £10.5m, and statutory operating profit of £3.8m.

As at 31 March, the book value of the gross assets subject to the transaction amounted to £50.1m.

Milkrite InterPuls is led by managing director Craig Sage and finance director Andrew Porter, who would be transferring to DeLaval along with all other Milkrite InterPuls employees.

Milkrite InterPuls would be treated as a discontinuing operation in Avon's 2020 financial statements, and so the results of the division up to the date of disposal would be reported as a single line item in the consolidated statement of comprehensive income, with the 2019 comparators restated on the same basis.

"This transaction represents an important step in the strategic development of Avon Rubber," said chief executive officer Paul McDonald.

"Milkrite InterPuls has been an important part of the Group over many years.

"However, having achieved our valuation expectations, the board believes the time is right to allow this business to grow and flourish under new ownership."

Following completion, McDonald said Avon would be solely focussed on its Avon Protection business, and its respiratory and ballistic protection speciality in military and first responder markets.

"The proceeds of the transaction will provide further funding capacity, enabling us to take advantage of acquisition opportunities to deliver significant strategic and financial value against our clear criteria and enhance our capabilities within our target markets."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Avon Rubber Market Data

Currency UK Pounds
Share Price 2,664.00p
Change Today -36.00p
% Change -1.33 %
52 Week High 4,625.00p
52 Week Low 2,660.18p
Volume 118,536
Shares Issued 31.02m
Market Cap £826.46m
RiskGrade 186

Avon Rubber Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
96.24% below the market average96.24% below the market average96.24% below the market average96.24% below the market average96.24% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
38.06% below the market average38.06% below the market average38.06% below the market average38.06% below the market average38.06% below the market average
42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average
Income
73.99% below the market average73.99% below the market average73.99% below the market average73.99% below the market average73.99% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
33.63% below the market average33.63% below the market average33.63% below the market average33.63% below the market average33.63% below the market average
28.57% below the sector average28.57% below the sector average28.57% below the sector average28.57% below the sector average28.57% below the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 1
Sell 0
Strong Sell 1
Total 5
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Avon Rubber Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Aug-21 11-Feb-21
Paid 03-Sep-21 12-Mar-21
Amount 14.30¢ 18.06p

Trades for 18-Jun-2021

Time Volume / Share Price
16:47 353 @ 2,664.00p
16:35 51,645 @ 2,664.00p
16:30 838 @ 2,670.00p
16:29 1 @ 2,678.00p
16:29 0 @ 2,678.00p

Avon Rubber Key Personnel

CEO Paul McDonald
CFO Nick Keveth
Chair Bruce Thompson

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