Essentra plc Acquisition of Micro Plastics in Components (1900Z)
13 December 2017 - 6:01PM
UK Regulatory
TIDMESNT
RNS Number : 1900Z
Essentra plc
13 December 2017
ESSENTRA PLC
ACQUISITION OF MICRO PLASTICS IN COMPONENTS DIVISION
Essentra plc ("Essentra" or "the Company") today announces that
it has acquired 100% of the share capital of Micro Plastics for an
undisclosed cash consideration.
Based in Arkansas, US, Micro Plastics is a leading manufacturer
and distributor of nylon fasteners and other plastic components for
a wide range of industrial end-markets - including general
industrial, automotives and white goods - and will be reported
under the Company's Components division. The acquisition of Micro
Plastics not only expands the division's product range and adds
manufacturing capacity in the US, but also - with a facility in
Monterrey - it provides an entry platform into the attractive
Mexican market.
For the year ended 30 June 2017, Micro Plastics generated
revenue of c. US$26.8m and adjusted(1) Earnings Before Interest and
Taxation ("EBIT") of c. US$1.7m. Micro Plastics 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 Micro Plastics is consistent with our
strategic objective in Components of identifying value-adding
acquisition growth opportunities to consolidate our position as an
expert manufacturer and distributor of a wide range of low cost
components. As a leading provider of fasteners, Micro Plastics
significantly enhances our offering in the US for one of our core
product ranges and adds custom injection moulding capability, as
well as providing compelling cross-selling potential. In addition,
through the site in Monterrey, we will extend our manufacturing
footprint and gain access to a number of high-growth end-markets -
such as white goods and automotives - in Mexico."
(1) Before intangible amortisation and exceptional operating items
Enquiries
Essentra plc Ogilvy PR London
Joanna Speed, Investor Relations Sarah Edwards
Director Tel: +44 (0)7506
Tel: +44 (0)1908 359100 409668
E-mail: sarah.edwards@ogilvy.com
Notes to Editors
About Essentra plc
Essentra plc is a FTSE 250 company and a leading global provider
of essential components and solutions. 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.
Component Solutions
The Components business is a global market leading manufacturer
and distributor of plastic injection moulded, vinyl dip moulded and
metal items. Operating units in 24 countries serve a very broad
industrial base of customers with a rapid supply of products for a
variety of applications in industries such as equipment
manufacturing, automotive, fabrication, electronics and
construction.
The Pipe Protection Technologies business specialises in the
manufacture of high performance innovative products from commodity
resins to engineering-grade thermoplastics and polymer alloys for
use in a range of end-markets. Locations in four countries,
combined with a wide distributor network, serve customers around
the world.
Essentra Extrusion is a leading custom profile extruder located
in the Netherlands which offers a complete design and production
service. One of the first companies to extrude plastics in 1956,
Essentra is now one of Europe's most advanced suppliers of
co-extrusion and tri-extrusion to all branches of industry.
The Security business has access to a wide portfolio of products
and services, including printers, software and consumables from
leading manufacturers.
Health & Personal Care Packaging
A leading global provider of packaging and authentication
solutions to a diversified blue-chip customer base in the
pharmaceutical, health & personal care, consumer and specialist
packaging sectors. The business focuses on delivering value-adding
innovation, quality and service through the provision of a wide
range of printed products and solutions, including cartons, tapes,
leaflets, foils, labels and authentication solutions.
The Speciality Tapes business has expertise in coating multiple
adhesive systems in numerous technologies. With close to 3,000
adhesive products available for same-day shipping, Essentra's
products can meet all high performance needs, from foam, magnetic,
finger lift and acrylic high bond tapes to hook and loop and
non-skid foam.
Filter Products
Essentra Filter Products is the only global independent
cigarette filter supplier. The nine worldwide locations, including
a dedicated Technology Centre supported by three regional
development facilities, provide a flexible infrastructure
strategically positioned to serve the tobacco industry. 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.
Headquartered in the United Kingdom, Essentra's global network
extends to 33 countries and includes c. 8,000 employees, 48
principal manufacturing facilities, 64 sales & distribution
operations and 4 research & development centres. For further
information, please visit www.essentraplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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