6th Aug 2015 07:10
LONDON (Alliance News) - Avon Rubber PLC Thursday said it acquired specialist milking components developer InterPuls SpA for EUR29.8 million to enhance its offering to the dairy sector.
The engineering company said it will inherit EUR4.0 million of debt from InterPuls and pay EUR25.8 million in cash for the deal.
"The acquisition will broaden Avon's product range, client base and geographic reach, while the integration of Avon and InterPuls products into each company's distributor base will provide enhanced commercial growth opportunities in future years," said Avon Rubber.
Avon Rubber said InterPuls has a "unique range of specialist milking components", including pulsators, milk meters, automatic cluster removers and vacuum pumps, which enable customers throughout the world to configure "state of the art" milking systems.
Avon Rubber expects to sell InterPuls products under the new "Milkrite-InterPuls" brand which will aim to provide "complete teat to pipeline solutions for the dairy sector", it said in a statement.
InterPuls reported revenue of EUR15.1 million in 2014, with earnings before interest, tax, depreciation and amortisation of EUR3.1 million and a pretax profit of EUR2.3 million. Avon Rubber is expecting the deal to be "significantly" earnings enhancing from 2016 onwards.
Avon Rubber shares were up 4.2% to 838.00 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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