Melksham, UK – Avon Rubber plc is exploring acquisition opportunities in the current fiscal year (started 1 Oct), according to the company chief executive Paul McDonald.
“We intend to complement the organic growth strategy… with carefully selected value-enhancing acquisitions within both Avon Protection and [dairy equipment division] milkrite | InterPuls,” said McDonald in a 14-Nov annual results statement.
The acquisitions, said the Avon CEO, are intended to complement and extend the reach of the company’s existing businesses.
The company currently has a strong balance sheet, including net cash of £46.5 million (€52 million), together with undrawn bank facilities of $40 million (€35 million).
These financial resources will be geared towards the potential acquisitions, the company said.
Additionally, according to McDonald, the company is willing to extend leverage up to two times its earnings (EBITDA) to pursue potential acquisitions.
As part of its acquisition strategy, the dairy equipment division acquired the Merrick’s calf nurser product line for $2.1m in June this year.
“[The division] has been the long-standing manufacturer of the rubber component of the calf nurser product and the acquisition enables us to take full control of the distribution of this product,” the Avon Rubber boss added.