Thursday March 1, 2018

Deal marks FRP's second Corporate Finance deal this year

Our Corporate Finance team in Bristol has advised Wiltshire-headquartered Avon Rubber PLC on the divestment of Avon Engineered Fabrications, Inc. (AEF), its US-based hovercraft skirt and bulk liquid storage tank business, to Pinewell Capital-backed Performance Inflatables Co., LLC.

Partner Mark Naughton led the $9.25m transaction supported by Associate Director, Alex Sargeant.

Performance Inflatables, also based in the US, has further boosted its presence in the engineered inflatables sector with the acquisition of AEF, which is a leading supplier of industrial coated fabric goods to the US Military. The cross-border transaction, the second we have advised on this year, sees Avon Rubber divest a non-core subsidiary to focus on respiratory protection systems and milking point solutions through its two businesses, Avon Protection and milkrite | InterPuls.

Commenting on the deal, Avon Rubber PLC Chief Financial Officer, Nick Keveth said: “We are delighted to have concluded a transaction that recognises the value of AEF for Avon Rubber whilst enabling AEF to continue to thrive under new ownership. The outcome is a great result for Avon, and FRP has been instrumental in making it happen. The FRP team drove the deal to completion allowing senior management to continue to focus on running the core business, knowing the process was in good hands.”

Mark added: “In Summer 2017 Avon Rubber concluded that AEF was non-core to Avon Protection’s long-term strategy. We were engaged to find a buyer for the business that not only delivered value for shareholders but also provided a “home” for the business that would enable it to continue to prosper in the future. We were delighted to find and secure US-based Performance Inflatables as the new home for the business.”