Avon to acquire Team Wendy
Avon Rubber plc has announced the signing of an agreement to acquire Team Wendy, LLC (Team Wendy), a supplier of helmets and helmet liner and retention systems for military and first responder markets, for US$130 million (approximately £100 million).
Image courtesy Avon
The Board believes that the acquisition will be an important step in the strategic development of Avon Rubber as a leading provider of life critical personal protection systems to military and first responder markets.
Combining Team Wendy with Avon Protection’s existing Helmets & Armour business will create a global leader in Military and First Responder helmets with a broader product portfolio and stronger capabilities and routes to market.
Team Wendy adds leading helmet liner and retention systems used by the US Department of Defense (DoD) and established positions in Rest of World Military and First Responder helmet markets to Helmets & Armor which is focussed on next generation ballistic helmets and body armour for the DoD.
The enlarged helmet business will be better positioned for investment in next generation products and establishes a broader platform into which other technologies can be incorporated.
The Directors believe that the Acquisition will enhance shareholder value, meeting all of the Group’s strategic and financial criteria, and represents an immediate and compelling use of proceeds from the sale of milkrite | InterPuls (the Dairy Disposal) through the redeployment of capital into a highly complementary business with higher growth and margins and at a lower EBITDA multiple than obtained for milkrite | InterPuls.
Paul McDonald, Avon Rubber, Chief Executive Officer, commented: “The acquisition of Team Wendy is another important strategic step in the transformation of Avon Rubber into a leading provider of life critical personal protection systems.
"We are delighted to have identified an opportunity that fits our clear commercial and financial criteria and enables us to immediately reinvest the milkrite | InterPuls proceeds to drive additional shareholder value.
"Team Wendy is a high-quality business with complementary liner and retention system technologies and established positions in Rest of World Military and First Responder helmet markets. Bringing Team Wendy into the same family with our existing Helmets & Armor business establishes Avon Protection as a global leader in Military and First Responder helmets, with an enhanced and broader product portfolio with stronger capabilities and routes to market.
"We look forward to welcoming Team Wendy into the Avon Rubber family and working together to further develop head protection systems that prevent traumatic brain injury and to improve the performance and capability of our customers.”
Jose Rizo-Patron, Team Wendy, LLC, Chief Executive Officer, added: “Today’s announcement marks an exciting new chapter for Team Wendy that will usher in new opportunities for our employees, our customers and our business partners.
"It was important for us to find the right owner for Team Wendy with a shared vision to save lives by providing the best for anyone wearing a helmet and who would continue to build on Team Wendy’s legacy.
"Avon Rubber shares our vision for the growth and expansion of Team Wendy and, as such, we believe they are the right long-term partner for our customers, employees and other stakeholders.”