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Share Name Share Symbol Market Type Share ISIN Share Description
Essentra Plc LSE:ESNT London Ordinary Share GB00B0744359 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.60p -0.17% 359.80p 358.80p 359.60p 360.40p 357.20p 359.40p 51,969 12:05:02
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 1,027.3 -4.9 43.7 8.2 946.28

Essentra plc Disposal of Pipe Protection Technologies Business

14/01/2019 2:44pm

UK Regulatory (RNS & others)


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RNS Number : 0455N

Essentra plc

14 January 2019

ESSENTRA PLC

DIVESTMENT OF PIPE PROTECTION TECHNOLOGIES BUSINESS

Essentra plc ("Essentra" or the "Company") today announces the divestment of its Pipe Protection Technologies business ("PPT") to certain wholly-owned subsidiaries of National Oilwell Varco, Inc. ("NOV") (the "Transaction"). The Transaction values PPT at US$48.0m (approximately GBP38m), 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 PPT business forms part of Essentra's Specialist Components division. For the year ended 31 December 2017, PPT delivered operating profit of GBP4.2m. As at 30 June 2018, the gross assets of PPT were GBP41.8m.

Commenting on today's announcement, Paul Forman, Chief Executive said:

"As we continue to assess our portfolio of businesses, it is clear that the unique capabilities of PPT can be better developed - both in terms of people and investment resource - by a third party with real strategic strength in the wider oil and gas industry.

As a result, the transaction not only represents good value for Essentra's shareholders, but also provides our PPT business with a strong platform for future successful growth under the strategic ownership of NOV."

Note: The pro forma impact of the transaction on Essentra's leverage as at 30 June 2018 is to reduce the net debt to EBITDA ratio from 1.9x as reported to 1.6x.

Enquiries

 
 Essentra plc                         Tulchan Communications LLP 
  Joanna Speed, Investor Relations      Martin Robinson 
  Director                              Toby Bates 
  Lucy Yank, Group Communications       Guy Bates 
  Director                              Tel: +44 (0)20 7353 4200 
  Tel: +44 (0)1908 359100 
 

Market Abuse Regulation statement

This announcement contains inside information.

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 from the start of 2018 - 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 27 countries worldwide, ten manufacturing facilities and 24 logistics centres serve more than 90,000 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 multi-continental suppliers of a full secondary packaging range to the health and personal care sectors, with 25 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 nine worldwide locations, including 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 five smaller businesses. These activities largely have strong positions in the markets in which they operate, although they have little overlap with each other or with Essentra's larger three global divisions.

The Extrusion business 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, Essentra is now one of Europe's most advanced suppliers of co-extrusion and tri-extrusion to all branches of industry.

The Speciality Tapes business has expertise in coating multiple adhesive systems in numerous technologies, with close to 3,000 tape products available for same-day shipping and predominantly for point of purchase and white goods 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, 48 principal manufacturing facilities, 62 sales & distribution operations and 4 research & development centres. For further information, please visit www.essentraplc.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

DISUSSSRKUAAAAR

(END) Dow Jones Newswires

January 14, 2019 09:44 ET (14:44 GMT)

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