21st Jun 2005 07:00
Avon Rubber PLC21 June 2005 Embargoed until 0700 hrs on 21 June 2005 Avon Rubber p.l.c. ACQUISITION OF INTERNATIONAL SAFETY INSTRUMENTS, INC Avon Rubber p.l.c. (Avon) announces that it has today acquired InternationalSafety Instruments, Inc (ISI), a leading manufacturer of self-containedbreathing apparatus (SCBA) based in Georgia, USA for a total consideration of upto $22.7 million. Avon has identified respiratory protection as a major growth area for the Group,which is the prime contractor for the new United States Joint Services GeneralPurpose Mask (JSGPM), entering production towards the end of 2005. Avon alsosupplies nuclear, biological and chemical respiratory protection equipment foruse in high risk areas such as the nuclear industry as well as for firstresponders in law enforcement and medical support in both Europe and NorthAmerica. The Group has identified the military and emergency services markets askey areas of activity for future growth. Avon recognises that it needs todevelop or acquire certain technologies to have a broader product offering inthese markets. SCBA is a key technology required to complement its presentproduct range. ISI was founded in 1980 by its present owner and CEO, Donald W Dawson, who willcontinue in his current executive role for the foreseeable future. ISI hasdeveloped a leading position in SCBA technology which is used in environmentswhich pose an immediate danger to life and health (IDLH), such as fire-fighting.Based in Lawrenceville, Georgia, ISI manufactures and supplies SCBA and thermalimaging equipment to emergency services, particularly fire services, through adistributor network in the United States and 31 countries worldwide. ISI bringsto the Group strong experience and a reputation for innovation in SCBA andrelated technologies. Products such as ISI's Viking range of breathingapparatus, which is NIOSH CBRN and NFPA 2002 approved, are noted for theircomfort and ease of use in ISI's United States home market and, meeting thelatest standards, offer advantages for professional users worldwide. Thecombination of ISI's SCBA technology and Avon's existing product range, as wellas complementary distribution networks for military and emergency servicesmarkets, offers the opportunity for accelerated growth, both for ISI and forAvon's existing business. ISI's continuous drive to develop leading edge technology and incorporate itinto its products resulted in their receiving Frost & Sullivan's 2005Environmental Health & Safety Global Excellence in Technology Innovation Award,with the following comment: "ISI has over the years demonstrated an ongoing ability to develop and market avariety of cutting-edge, customized products for use by law enforcement,industry, and the fire services. The company has also demonstrated a commitmentto proper, after-the-sale product implementation and usage by offering trainingcourses at several proficiency levels. It is in recognition of theseachievements that Frost & Sullivan is pleased to bestow International SafetyInstruments with the 2005 Global Excellence in Technology Innovation Award." ISI is being acquired from the Donald Dawson Family Limited Partnership throughthe purchase of 100% of the share capital in its holding company Precision HydroTesting, Inc. for an initial cash consideration of US$20.7 million. Further cashconsideration up to a maximum of US$2 million may become payable in December2007 subject to Mr Dawson's remaining with the Group. The transaction will be funded by Avon from its existing resources. Theacquisition is expected to be earnings enhancing in the first year, before theexpected synergies are taken into account. ISI had tangible net assets of $6.8million at 31 December 2004 and recorded a continuing profit before interest andtax of $3.4 million in the financial year ended on that date. Commenting on the acquisition, Steve Willcox, Chief Executive of Avon Rubber,said: "Avon has identified Protection as an area for strategic growth and theacquisition of ISI brings technology, new products and access to distributionchannels which complement our existing military and law enforcement products androutes to market. As we approach the increasing integration of systems formilitary and emergency services, access to technologies such as self-containedbreathing apparatus will add significantly to our capabilities". Terry Stead, Chief Executive Designate commented: "The Acquisition of ISI is asignificant step forward for Avon and its business in the Protection area. As Iassume the role of Group CEO I look forward to working with Avon ProtectionSystems and the other Avon businesses and developing a group that will deliverincreasingly attractive returns to shareholders. To this end I will be reviewingthe options available to enhance value delivery from the Group's operations". < ends > For further enquiries, please contact: Avon Rubber p.l.c. 01225 861100Terry Stead, Chief Executive DesignateJayne Hunt, PR Executive Weber Shandwick Square Mile 020 7067 0700Richard HewsRachel TaylorStephanie Badjonat This announcement contains certain statements that are forward-looking. Thesestatements involve risk and uncertainty because they relate to events and dependon circumstances that will occur in the future. Forward-looking statements arenot guarantees of future performance. The Group's actual results of operations,and the development of the industries in which the Group operates, may differmaterially from those made in or suggested by these statements and a number offactors could cause the results and development to differ materially from thoseexpressed or implied by these forward-looking statements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Avon Protection