Avon Rubber (AVON) has gained a stronger foothold in dairy markets via its €29.75m (£21m) acquisition of InterPuls. The Italian manufacturer of specialist milking components, including pulsators, milk meters and automatic cluster removers, promises to expand the rubber specialist's range of popular dairy products.
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InterPuls, which also makes sensors and devices to monitor the life cycle of cows, generated revenue of €15.1m and pre-tax profit of €2.3m in the year to December 2014. Broker WH Ireland responded by upgrading EPS for both 2016 and 2017 by 8 per cent to 52.5p and 55.8p, respectively. Analysts at Investec were similarly encouraged, predicting the deal will be between 5 and 7 per cent accretive to EPS in the year to September 2016.
