Essentra plc Acquisition of Micro Plastics in Components (1900Z)

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: [phone] 
  Tel: [phone]             409668 
                                      E-mail: [e-mail] 
 

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

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December 13, 2017 02:01 ET (07:01 GMT)