Shares of Avon Rubber (LON: AVON) soared more than 7% on Wednesday after the military equipment supplier agreed to acquire helmet group Team Wendy for $130 million.
The aim behind the idea to complete the deal is to give an “enhanced and broader product portfolio with stronger capabilities and routes to market”.
If shareholders approve the takeover deal at the meeting scheduled for Friday, it is expected that the deal would be completed in the first quarter of the group's 2021 financial year.
In the meantime, Avon Rubber remains confident it will meet this year’s expectations.
‘Full year cash conversion is expected to return to normalised levels, following receipt of the delayed payment relating to the rest of world mask contract highlighted in our half year results announcement, Avon Rubber said.
Avon Rubber share price soared over 7% to 3975p as the buyers attempt to print a new record high above 3980p.