Divestment of Extrusion business
ESSENTRA PLC
DIVESTMENT OF EXTRUSION BUSINESS
Essentra plc ("Essentra" or the "Company") today announces the divestment of its Extrusion business to Inter Primo A / S (the "Transaction"). The Transaction values Extrusion at €16.2m (approximately £14.4m), free of cash and debt.
The consideration, which is subject to customary adjustments for net debt and working capital, has been satisfied fully in cash. The Board intends to use the proceeds to further strengthen Essentra's balance sheet.
The Extrusion business forms part of Essentra's Specialist Components division. For the year ended 31 December 2018, Extrusion delivered operating profit of £1.2m.
Commenting on today's announcement, Paul Forman, Chief Executive said:
"The sale of Extrusion not only represents good value for Essentra's shareholders, but also provides the business with a strong platform for future successful growth given Inter Primo's established presence in the extrusion industry. We wish the business every success in the future."
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 divisions - reflecting the Company's strategic review - 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 28 countries worldwide, twelve 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 22 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
Essentra Specialist Components comprises the Company's four smaller businesses and these activities largely have strong positions in the markets in which they operate.
The Speciality Tapes business has expertise in coating multiple adhesive systems in numerous technologies, with approximately 1,200 tape products stocked for same-day shipping predominantly for retail point of purchase, appliance and industrial applications.
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 business provides a wide range of branded hardware supplies to a broad base of industrial customers, largely located in the US Mid-West.
The Card Solutions business is a leading European provider of ID card printers, systems and accessories to direct and trade customers.
Headquartered in the United Kingdom, Essentra's global network extends to 33 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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