MELKSHAM-based Avon Rubber has has completed the acquisition of 100% of the share capital of Hudstar Systems Inc. for £3.2million ($5.1m) in cash from existing cash resources.
Hudstar is a leading Florida-based designer and manufacturer of electronic control systems used in powered and supplied air respiratory protection systems, largely for Avon’s award winning Deltair product, Avon said in a statement.
Avon Rubber, at Hampton Park, Melksham, is a world-leading manufacturer of gas masks and components for dairy farming, and has turned its fortunes around from a dire financial situation several years ago.
Hudstar is a private US company and so does not produce audited accounts but, based on cost savings expected to be achieved, Avon expects this acquisition to modestly boost the earnings of the group in its next full financial year.
Peter Slabbert, chief executive, said: “The addition of Hudstar’s technology and expertise in electronics adds to Avon’s capability and will, in addition to providing short term cost savings, provide longer term product development opportunities in this key technology area.”
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