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A Time of Expansion - Part 1
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In the Spring of 1986, Avon acquired Galt
Composites and also later in the year, CQC PLC. These companies
both manufactured a range of defence products including
helmets, body armour, NBC protective suits and sleeping
bags.
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In 1987, Avon purchased the
French company, Tabur Caoutchouc, based in Vannes, Brittany,
now known as Avon Polymères France. It manufactures
a wide range of rubber components for the automotive market.
In 1988, following a record profit which was 40% up on the
previous year, Avon Inflatables reached an agreement to
purchase the assets of the French inflatable boat manufacture,
Sillinger, located in the Loire Valley in France. For many
years sales of Avon inflatable products had been inhibited
by the lack of a European manufacturing and distribution
base and it was hoped that the acquisition of Sillinger
would provide a springboard for the development of the European
inflatables market.
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These are the type of defence products
manufactured at CQC and Galt |
Cadillac Rubber and Plastics Group
is Avon's largest acquisition ever
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In June of 1989, Avon's largest
acquisition ever was made. Cadillac Rubber and Plastics
Group, a leading manufacturer of extruded and moulded rubber
and plastics products serving mainly the US automotive industry,
was purchased for over £37 million. The Cadillac Group
consisted of an administrative headquarters and three manufacturing
plants in Michigan and factories in Lockport and Albion,
New York State, together with a new custom-built plant in
Juarez, Mexico. The purpose of the acquisition was to establish
additional manufacturing capacity in the US and strengthen
Avon's position in the US automotive market. The Cadillac
group already had strong trading links with the major US
car manufacturers and allowed Avon to develop automotive
and technical products markets which could not be effectively
addressed from its European factories.
Also in 1989, SP Tyres UK Limited, a subsidiary of one
of the largest tyre groups in the world, which manufactures
under the Dunlop brand, acquired a 70% stake in Motorway
Tyres and Accessories Ltd. As part of the agreement,
SP also acquired a 20% holding in Avon Tyres Ltd. The
aim was for the two companies to examine the possibilities
for manufacturing selected tyres for each other.
In 1992, a joint venture was formed, also in the USA, between
Cadillac Rubber & Plastics and two Japanese companies,
Teito Rubber and Tomen Corporation. The new company, known
as CT Rubber & Plastics Inc, is 60% owned by Avon and
supplies automotive components such as radiator, heater,
fuel and emission hoses.
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