Avon on fire with ISI deal

June 2005

Avon Rubber plc has acquired International Safety Instruments, Inc (ISI), a leading manufacturer of self-contained breathing apparatus (SCBA) based in Georgia, USA, for up to $22.7 million. Livingstone advised Avon, for which it has completed two transactions previously, on the acquisition.

Avon has identified respiratory protection as a major growth area for the Group, which is the prime contractor for the new United States Joint Services General Purpose Mask (JSGPM), the world’s most advanced military gas mask. The Group has identified the Military and Homeland Security markets as key areas of activity for future growth.

ISI was founded in 1980 by its present owner and CEO, Donald W Dawson, who will continue in his current executive role for the foreseeable future. ISI has developed a leading position in SCBA technology which is used in environments which pose an immediate danger to life and health (IDLH), such as fire-fighting and law enforcement.

ISI brings to the Group a reputation for innovation in SCBA and related technologies. The combination of SCBA technology and Avon’s existing product range, as well as complementary distribution networks for Military and emergency services markets, offers an exciting opportunity for accelerated growth, both for ISI and for Avon’s existing business.

ISI is being acquired for an initial cash consideration of US$20.7 million. Further cash consideration up to a maximum of US$2 million may become payable in December 2007 subject to Mr Dawson’s remaining with the Group.

The acquisition is Avon’s first strategic milestone under the leadership of CEO designate Terry Stead, who commented: “The Acquisition of ISI is a significant step forward for Avon and its business in the Protection area. As I assume the role of Group CEO, I look forward to working with Avon Protection Systems and the other Avon businesses and developing a group that will deliver increasingly attractive returns to shareholders”.

The Livingstone team was led by partner Jeremy Furniss, who commented “We are delighted to have completed another deal for Avon. The Group has a clear strategy for the global respiratory products sector and we are working closely with terry and his team to identify further targets.

Jeremy Furniss, Partner
Tel: 020 7484 4703
Email: jfurniss@livingstonepartners.co.uk

Daniel Domberger, Deal Leader
Tel: 020 7484 4731
Email: ddomberger@livingstonepartners.co.uk