Acquisition of Nekicesa Packaging S.L.
ESSENTRA PLC
ACQUISITION OF NEKICESA IN PACKAGING
Essentra plc ("Essentra" or the "Company") today announces it has acquired 100% of the share capital of Nekicesa Packaging S.L. ("Nekicesa") from GED Iberian B, F.C.R. and EBN Vaccaria, F.C.R. for an undisclosed cash consideration.
With two well-invested facilities in Madrid, Nekicesa is one of the leading converters of folding cartons supplying the pharmaceutical end-market in Spain and will be reported under the Packaging division. The acquisition of Nekicesa adds manufacturing capacity and value-added service capability to the existing site footprint in Barcelona, thereby giving Essentra a presence in both pharmaceutical hubs in Spain and establishing the Company as a leading player with the potential for multi-product capability in this attractive packaging market.
Nekicesa has been acquired on a cash-free, debt-free basis, funded from existing facilities, and the transaction will be immediately earnings enhancing to the Company.
Commenting on today's announcement, Paul Forman, Chief Executive said:
"The acquisition of Nekicesa is indicative of the value-creating acquisition opportunities which are available to us now that our Packaging division has successfully been stabilised. With a proven track record of profitable growth under an experienced management team, Nekicesa is a great fit with our own business in Barcelona as we continue to focus on our strategic objective of being the leading dedicated supplier of specialist secondary packaging and value-added services to the global pharmaceutical, personal care and beauty industry. I would like to welcome all at Nekicesa to Essentra and wish them every success."
Enquiries
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Essentra plc Joanna Speed, Investor Relations Director Lucy Yank, Group Communications Director Tel: +44 (0)1908 359100 |
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Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions. Organised into four global divisions, Essentra focuses on the light manufacture and distribution of high volume, enabling components which serve customers in a wide variety of end-markets and geographies.
Essentra Components
Essentra Components is a global market leading manufacturer and distributor of plastic injection moulded, vinyl dip moulded and metal items. Operating in 29 countries worldwide, 14 manufacturing facilities and 29 logistics centres serve more than 85,000 customers with a rapid supply of low cost but essential products for a variety of applications in industries such as equipment manufacturing, automotive, fabrication, electronics and construction.
Essentra Packaging
Essentra Packaging is one of only two multicontinental suppliers of a full secondary packaging range to the health and personal care sectors, with 24 facilities across four geographic regions. The division's innovative products include cartons, leaflets, self-adhesive labels and printed foils used in blister packs, which help customers to meet the rapidly-changing requirements of these end-markets and can also be combined with Essentra's authentication solutions to help the fight against counterfeiting.
Essentra Filters
Essentra Filters is the only global independent cigarette filter supplier. The seven worldwide locations, plus a dedicated Technology Centre supported by three regional development facilities, provide a flexible infrastructure strategically positioned to serve the tobacco sector. The business supplies a wide range of value-adding high quality innovative filters, packaging solutions to the roll your own segment and analytical laboratory services for ingredient measurement to the industry: Essentra's offering also includes e-cigarette and Heat Not Burn solutions to the rapidly evolving market for Next Generation Products.
Essentra Specialist Components
The division includes Essentra's two smaller businesses and these activities largely have strong positions in the markets in which they operate.
The Tear Tapes business is globally recognised as the leading manufacturer and supplier of pressure-sensitive tear tapes, which are largely used in the tobacco, food and drink and specialist packaging sectors.
The Industrial Supply (Reid) business provides a wide range of branded hardware supplies to a broad base of industrial customers, largely located in the US Mid-West.
By the end of Q3 2019, the Tear Tapes business will be absorbed into the Filters division and the Industrial Supply (Reid) business will be absorbed into the Components division, further to which the Specialist Components division will be dissolved.
Headquartered in the United Kingdom, Essentra's global network extends to 34 countries and includes c. 8,000 employees, c. 45 principal manufacturing facilities, c. 30 sales & distribution operations and 4 research & development centres. For further information, please visit www.essentraplc.com.
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