The acquisition of milking components business InterPuls appears highly complementary to Avon’s Dairy business in terms of both product offer and geographic reach, providing strong potential for cross-selling. InterPuls generates an attractive c.16% EBIT margin and has been acquired at a c.15% discount to Engineering sector multiples. We have increased our EPS forecasts by 6% pa from FY16 and increased our target price from 875p to 910p, retaining our Buy stance.
10 Aug 2015
Highly complementary InterPuls acquisition
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Highly complementary InterPuls acquisition
Avon Protection PLC (AVON:LON) | 1,200 24 0.2% | Mkt Cap: 363.1m
- Published:
10 Aug 2015 -
Author:
Jo Reedman -
Pages:
5
The acquisition of milking components business InterPuls appears highly complementary to Avon’s Dairy business in terms of both product offer and geographic reach, providing strong potential for cross-selling. InterPuls generates an attractive c.16% EBIT margin and has been acquired at a c.15% discount to Engineering sector multiples. We have increased our EPS forecasts by 6% pa from FY16 and increased our target price from 875p to 910p, retaining our Buy stance.