sold

swadiver

swadiver

Member
So I see VR Technologies has been sold to Avon Rubber. wondering what the future holds for their consumer oriented rebreathers.,
 
jptaylor9 said:
Thought they'd been bought by Hollis?
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Don't know. i just saw a press release indicating this.

Avon Rubber takes over VR Technology
26 April 2013 | 08:13am
StockMarketWire.com - Avon Rubber has acquired the business and assets of VR Technology, a market leader in diving rebreather systems and dive computers.

VR's products and key technologies will complement and enhance Avon's current and planned product ranges and increase respiratory protection opportunities for the group, in particular with navies around the world.

Avon has also acquired purpose-built freehold premises in Picayune, MS, USA, for use by its subsidiary Avon Engineered Fabrications in anticipation of the expiry of the lease of its existing premises on 30 September.

Avon says the total cash consideration for the two transactions is £3m. The transactions are not expected to impact forecast earnings for the current financial year apart from one-off exceptional transaction and relocation costs and the amortisation of acquired intangibles totalling £0.5m.

At 8:13am: [LON:AVON] Avon Rubber share price was +15.5p at 410.5p
 
Avon Rubber announced the acquisition of the business and assets of VR Technology.

VR Technology, a market leader in diving rebreather systems and dive computers, is credited with developing the first technical diving computer in the 1980s. A later rendition, the VR3, remained the industry benchmark for a number of years. In the early 1998, VR expanded into the manufacturing a closed circuit rebreathers with their first model, the Ouroboros, followed by the Sentinel LSS rebreather along with the VRx and NHeO computers several years later.

At the time of the acquisition, VR Technology was moving forward with newer technical Semi-closed rebreather, the Explorer, for Hollis Gear. But according to sources, the company had been amassing significant debt and was reaching a point of becoming insolvent.

A decision was made to sell rather than go into receivership, and Avon Rubber acquired the business, along with all its assets of Poole-headquartered VR Technology, for £3m, which included the leased property for their subsidiary company Avon Engineering Fabrications in Picayune, Mississippi.

Avon Rubber p.l.c. is a world leader in the design, test and manufacture of advanced Chemical, Biological, Radiological and Nuclear (CBRN) respiratory protection solutions to the worlds military, law enforcement, first responder, emergency services, fire and industrial markets.

According to a statement issued by the company, “VR’s products and key technologies will complement and enhance Avon’s current and planned product ranges and increase respiratory protection opportunities for the group, in particular with navies around the world.”

As to what we might see in rebreather development for civilian use from Avon in the future is anyone’s guess, that department has been entirely military in the past.
 
flip me, I'd be suprised if that didn't bring the prices of 2nd hand units crashing down. I stopped buying VR products when they stopped servicing older VR3's.
 
I send my Ouroboros back to service 6 months ago and get it back in good as new condition. So far the service was top notch. Hopefully this will be the case in future.
 
Pat413 said:
I send my Ouroboros back to service 6 months ago and get it back in good as new condition. So far the service was top notch. Hopefully this will be the case in future.
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Yes that is good news as the alternative possibility is that the creditors could have locked the doors and then your unit might have been trapped as an asset and you would then become a creditor trying to get your unit returned to you.
 
jkaterenchuk said:
Yes that is good news as the alternative possibility is that the creditors could have locked the doors and then your unit might have been trapped as an asset and you would then become a creditor trying to get your unit returned to you.
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I hope it's not that bad! Sooner or later I will need support again...
 
jkaterenchuk said:
Yes that is good news as the alternative possibility is that the creditors could have locked the doors and then your unit might have been trapped as an asset and you would then become a creditor trying to get your unit returned to you.
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They didn't go bankrupt, they just sold the company. You wouldn't have lost the unit, there just might have been a bit of delay while the new owners take over.
 
My Money is on the new owners utilising the existing relationship Kevin built with AUP in order to bring new products to market. VR will also benefit from economies of scale that a bigger parent company brings for R&D, marketing, existing product and technologies for example.
 
Chris Brown said:
My Money is on the new owners utilising the existing relationship Kevin built with AUP in order to bring new products to market. VR will also benefit from economies of scale that a bigger parent company brings for R&D, marketing, existing product and technologies for example.
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Yes.
VR wasn't in Bankrupt! They kept following the way to become an R&D company.
The supporto for all the customers and dealers will be normally done as before or even better.

Nad
 
Iain3 said:
They didn't go bankrupt, they just sold the company. You wouldn't have lost the unit, there just might have been a bit of delay while the new owners take over.
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I did not say they went bankrupt. There are several steps that a company and major creditors can take prior to a formal filing of bankrupcy. It is not in the best interest of the company to tell it's customers that it is having financial problems and usually there is no confirmed public disclosure until the doors are locked. When that happens any unit at the company location will be difficult to get back in a timely manner.

One option is to find someone to buy the assets of the company (sometime leaving the creditors holding the bag) and try to make it an ongoing concern. At that point often the price paid is very low and the new company is taking a calculated gamble that they can make it profitable but if not they can exit quickly with little loss of capital. The new company is not going to tell everyone that they have no idea if the business will work or not. It called spin or marketing and they do not want to give customers a verified reason to move away. In fact the announcement are written to be upbeat and good news without making promises to offset potential negative views and worry by the customers or suppliers.

These are facts in business. Our love or loyalty to a particular person or business has nothing to do with it. A prudent consumer that understands this and can read between the lines will distance themselves from the situation until there is sometime and proof that the new owner is doing well financially before risking their gear or money.

The only ones that know the real story here are the principles or board members of the two companies and they are not going to be telling the public the real story. So unless you are one of those few people then I wish you all the best with any gear or equipment you place you blind faith in result from this transaction.

John
 
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Conversation with them when I just picked up my unit from service certainly allayed any fears for the forseable future, Avon are keen to invest and get the company stable again. I don't perceive any real issues with supply or back up from what I've been told, at least for a few years anyway :720icon:
 
Nad said:
Yes.
VR wasn't in Bankrupt! They kept following the way to become an R&D company.
The supporto for all the customers and dealers will be normally done as before or even better.

Nad
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I really do not know how you can predict the future. The Insolvency Filing that was posted above is not something that a financially stable company does as a way to attract a buyer or customers. It is certainly not a very strategic way to achieve a transformation to a R&D company.

It is a step they are either forced into or do to avoid paying their suppliers usually because they do not have the cash to pay. A company coming in and buying them immediately before the official bankrupcy judgement might take many forms. I am not familiar in UK process but in the USA the buying company can agree to only purchase the assets and not take responsibilty for the liabilities thereby leaving the suppliers on the hook.

That usually does not go over too well with the suppliers and they might very well decide they will no longer supply to the new company. If they are a critical supplier then that alone could impact if the new company continues to supply a product and at what cost and terms of payment.

Additionally, some of the reason that the company may have been in financial difficulty could be because they did not get timely payment from the customers and dealer you mention. The bills are classified as an asset and the new company is within their rights to seek payment of them aggressively. That alone could result in a poor relationship between the new company and the old dealer and either might decide to no longer carry or support the product line.

I have no idea what portions of what I mention above are in effect for this particular transaction but I suspect your statement is based also upon no facts and only blind faith.

The only facts I have to support my view of proceeding with caution and eyes wide open are that I lived thru exactly what I have written as a executive in both the old and new companies and was involved directly with both sides.

John
 
I rang VR today and ordered some O2 cells, you have to pay by bank transfer or cash but it's business as usual as far as sales etc goes

I wish them the best of luck for the future

Paul

Sent from my GT-N7100 using Tapatalk 2
 
Oxygen spikes

I had heard second hand about two instances of the Sentinels spiking the PPO2 and in one incident forcing the diver to bail-out and another one were the diver was hurt. Do you think the insolvency filling had to do with units spiking the PPO2?
 
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