- Avon Rubber said it had signed an agreement to acquire 3M's ballistic-protection business and the rights to the Ceradyne brand for a total of up to $126m. The company also said it was track to meet full-year expectations.

The deal included an initial cash amount of $126m and a further contingent cash consideration of up to $25m would be payable depending on the outcome of pending tenders.

Operating primarily from three sites in the U.S. with approximately 280 employees, 3M's ballistic-protection business, a provider of next generation armour solutions, including ballistic helmets and body armour, was a trusted supplier to U.S. and Rest of World Military and Law Enforcement customers, the company said.

In the year ended 31 December 2018, the business delivered revenue of $85.4m and earnings (EBITDA )of $10.8m.

Avon Rubber said it expected recurring annual net cost synergies of approximately $5m to be delivered in the first full year of ownership from integrating Information Technology systems and back office functions.

The one-off costs to implement were expected to be approximately $10m.

The acquisition was expected to close in the first half of the Group's 2020 financial year, subject to US regulatory approvals and customary closing conditions.

Avon rubber also provided an update on the second half performance, which it said had met its expectations, keeping the company on track to meet its current year expectations.

At 9:31am: [LON:AVON] Avon Rubber PLC share price was +107p at 1431p

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