Cadillac, Michigan -- The senior management of Avon Rubber plc's automotive group has entered into a definitive agreement with the company to acquire its automotive division.
Backed by Red Diamond Capital, a private equity firm based in New York, the management-led buyout is expected to be completed within three weeks and is contingent on shareholder approval.
With annual revenue of approximately $349 million (euro 280 million), Avon Automotive is a leading global supplier of low- pressure hoses for air-induction, fuel and coolant systems, as well as vibration-management products.
"As a privately-held company, we hope to accelerate Avon Automotive's global investment in technology, creating value for our automotive customers as well as career opportunities for Avon employees around the world," said Lee Richards, who heads the buyout team and currently serves as president of Avon's automotive division.
Richards noted that Red Diamond Capital has a strong commitment to the automotive industry, adding that he expected Avon Automotive's fundamental business operations and product lines to continue unchanged after the buyout.
Richards said that Avon Automotive's management team will remain in charge of the new enterprise and no plant closures are anticipated as a result of the transaction. Avon Automotive's global headquarters will continue to be in Cadillac, Michigan.
Avon Automotive has more than 3500 employees and operates 12
manufacturing facilities located in the US, the UK, Mexico, France, Spain, Portugal, the Czech Republic, India and Turkey. The division serves the automotive, heavy truck, small engine, and recreational vehicle industries. Its headquarters are in Cadillac, Michigan.