Specialist manufacturer Avon Rubber has acquired a thermal imaging camera business for £3.5m to strengthen its protection and defence business.
Melksham-based Avon said Argus, which it has bought from UK technology firm e2v, would “modestly” boost its earnings this year and lead to longer-term product development opportunities. 
Argus, based in Essex, designs and manufactures thermal imaging cameras for the first responder and fire markets. While it does not produce stand alone audited accounts, revenue in its last financial year was around £5m. Avon funded the acquisition by cash from existing debt facilities.
Avon’s protection and defence business produces innovative gas masks and respirators for defence and homeland security customers worldwide.
Avon interim chief executive officer Andrew Lewis said: “Argus is a strategic addition to our fire and first responder product range and we expect the acquisition to be modestly earnings enhancing during the current financial year.
“The Argus team brings a wealth of technical expertise in this area which will generate longer term product development opportunities for the protection & defence business.”
The acquisition comes days after Avon said in a trading update that it expects a strong end to its financial year with adjusted operating profit for the year “significantly ahead” of current market expectations.
This was driven primarily by the receipt and rapid fulfillment of a late order for respirators from a customer in the Middle East and strong trading in its North American law enforcement market.
A number of high-value Middle Eastern opportunities remained in the pipeline, Avon said. It expects to see the benefit of these orders next year.
Mr Lewis said: “We have world-leading respiratory protection products and, while predicting the timing of orders is often difficult, the ability to meet this customer’s requirement demonstrates our operational flexibility and the dedication of the team to exceed our customers’ expectations."
Avon’s preliminary results for the year to September 30 will be announced on November 18.
The Argus acquisition was welcomed by analysts with Roger Johnston at Edison Investment Research saying it demonstrated Avon’s “clear strategic direction”.
He added: “Through both internal investment and where it makes sense, and acquisition, the group is building a leading capability across the high end respiratory protection market. Adding thermal imaging will not only bring its own customers in the fire and first responder market, but gives Avon further expertise to develop its whole system approach which has been clearly evident through project fusion and previous bolt-on acquisitions.”
Bristol-headquartered law firm TLT advised Avon. Its team was led by corporate partner Alice Gardner and included employment legal director Alison Cameron, pensions and incentives solicitor Ben Player, commercial associate Dan Read and corporate solicitor Nicole Spurling.
