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New Contract Success for Avon
AVON RUBBER p.l.c.
("Avon", the "Group" or the "Company")
Avon has received a new 5 year contract award from the US Department of Defense (DoD) for the M53 Protective Mask. The M53 system is a new derivative of the M50 respirator and provides capability for use with all recognised forms of Personal Protection Equipment (PPE). The initial order under this contract is for $3.7m with an overall potential of $43.4m.
The M53 systems are to be delivered to the United States Department of Defense, the United States Coast Guard and the United States National Guard, opening a new customer base for Avon.
Avon also announces the completion of the sale and leaseback of their Avon Dairy Solutions facility in Johnson Creek, Wisconsin, USA to Robin Associates LLC. The transaction has a sale value of $5.2m (£3.1m) and will generate $4.0m (£2.4m) of net cash after fees, taxation and other associated costs. These proceeds will be used to pay down debt. The book value of the asset was £0.8m resulting in a profit (before taxation) on disposal of £2.1m which will be treated as an exceptional operating item in 2009.
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15th September 2009