US-based manufacturer Avon Engineered Fabrications (AEF) makes hovercraft skirts and bulk liquid storage tanks, mainly for the American military. As a result of Avon Rubber plc’s own acquisition strategy, AEF was set to lose the benefits it enjoyed under the US Small Business Regime. It was therefore deemed non-core to Avon Protection division’s long-term strategy, and Avon wanted to realise the value in the company while enabling it to move forward independently.
FRP’s Corporate Finance team were appointed to work with AEF and assess the options for the business. The team’s work in assessing AEF led to preparing it for sale, identifying a pool of potential buyers, and running a sales process to maximise the value for Avon Rubber.
The business was sold to US-based Performance Inflatables, part of American investment group Pinewell Capital, for $9.25 million. This not only realised a value considerably in excess of historic offers for the business, but also secured a home for AEF that will enable it to continue prospering into the future.
The business was sold realising value in considerable excess of historic offers.Mark Naughton Corporate Finance