WILTSHIRE, England (Aug. 29) — Avon Rubber P.L.C. has sold its Wiltshire plant to Clerical Medical Managed Fund for about $23 million but will continue to operate out of the facility under a lease arrangement.
The sale and leaseback transaction covers 15 years, although Avon Rubber has the option to pull out of the deal after 10 years. Proceeds from the cash transaction will be used to reduce indebtedness, the company said.
Avon Rubber is headquartered and produces both protection and engineered products at the factory.
The company´s respiratory protection business recently was awarded a large contract from the U.S. government for chemical, nuclear, radiological and biological masks, manufactured at its Cadillac, Mich., plant. It will move into full production of the masks in early 2007.