US: Avon Rubber to sell automotive division

摘要

THE senior management of Avon Rubber's automotive division has entered into an agreement with the company to acquire its automotive division, Avon Automotive. With annual revenue of about US$349m, Avon Automotive is a global supplier of low-pressure hoses for air-induction, fuel and coolant systems, and vibration-management products. New York based private equity firm Red Diamond Capital is supporting the management-led buyout, which is expected to be completed within three weeks and is dependent on the approval of shareholders. In a letter to shareholders, the company noted that after reviewing the future of the automotive business within the company it had concluded that the sale was in the best interests of shareholders.