Avon sells autos division

UK-listed auto parts maker Avon Rubber has agreed to sell its US-based automotive division to management backed by private equity firm Red Diamond Capital for an undisclosed sum.

The Avon Automotive subsidiary supplies low-pressure hoses for air-induction, fuel and coolant systems, as well as vibration-management products, and has annual revenues of about £188m (US$349m).

“As a privately-held company, we hope to accelerate Avon Automotive’s global investment in technology,” said Lee Richards, who was demoted from Avon’s main board in July and heads the buyout team as president of Avon’s automotive division.

He added: “Avon Rubber’s investment priorities were in other sectors.”

Avon Automotive has more than 3,500 employees and operates 12 manufacturing facilities in the US, the UK, Mexico, France, Spain, Portugal, the Czech Republic, India and Turkey. The division serves the automotive, heavy truck, small engine, and recreational vehicle industries. Its headquarters are in Cadillac, Michigan.