TLT has advised listed company Avon Rubber p.l.c. on the financing of a £75m acquisition of 3M’s personal ballistic protection business, along with the rights to its Ceradyne brand.
Avon Rubber is an innovative technology Group specialising in chemical, biological, radiological and nuclear (CBRN) respiratory protection systems.
3M’s ballistic protection business is a US-based leading provider of next generation armour solutions, including ballistic helmets and body armour.
The initial cash consideration was $91m (£75m), with a further cash sum of up to $25m (£21m) payable depending on the outcome of tenders for legacy products.
The deal will help deepen Avon Rubber’s relationship with the U.S. Department of Defense and significantly strengthen its technology and personal protection product portfolio.
The acquisition is expected to reach completion in the first half of the Group’s 2020 financial year, subject to US regulatory approvals and closing conditions.
The TLT team was led by partner Jon Stewart with support from solicitor Ed Lacey and is the latest example of TLT's continued role advising UK PLCs on major cross-border transactions.
Zoe Holland, deputy company secretary and general counsel at Avon Rubber, says: “Completing such a large and high-profile acquisition is certainly a strategic milestone for Avon Rubber. It is especially satisfying to have identified and executed an opportunity that fits with our clear commercial, financial and cultural criteria.
“We are thoroughly grateful to Jon and the team for their in-depth experience and their strategic understanding of the deal. They gave us excellent counsel and service throughout the transaction, which no doubt meant the deal was completed in a smooth and timely manner.”
Jon Stewart, partner at TLT, commented: “While we are continuing to see a trend of UK businesses being acquired by foreign companies, we are also seeing major UK companies, like Avon Rubber, buying foreign assets where this supports their business strategy and growth ambitions.
“This acquisition will no doubt cement Avon Rubber’s enviable position in the market and we are thrilled to have played a key part in this pivotal stage of its growth – not least unlocking the great potential of the US marketplace."
TLT recently acted for WHSmith PLC on the financing of a £150m acquisition of US-based pure play travel retailer, InMotion, creating a platform from which to expand its own international travel business into the world’s largest travel retail market.