Essentra plc Acquisition of Minority Stake in Filters Division (2725T)
March 19 2019 - 2:02AM
UK Regulatory
TIDMESNT
RNS Number : 2725T
Essentra plc
19 March 2019
ESSENTRA PLC
ACQUISITION OF MINORITY STAKE IN ESSENTRA (MEA) PTE. LTD IN
FILTERS DIVISION
Essentra plc ("Essentra" or "the Company") today announces the
acquisition of the 49% minority interest in its Filters joint
venture, Essentra (MEA) Pte. Ltd, from Aberdeen International FZE
(part of the BBM Bommidala group or "BBM") for a cash consideration
of GBP11.6m ("the Transaction"). Essentra (MEA) Pte. Ltd is the
holding company of Essentra FZE, which undertakes the Company's
Filters activities in Dubai.
Since it was established in 2013, Essentra FZE has served the
attractive markets of the Middle East with an increasingly complex
range of special filters, which has resulted in strong revenue and
profit growth. Accordingly, as the region continues to expand, 100%
ownership of Essentra FZE will allow the Company to further invest
in additional capacity and to introduce new processes and products
in Dubai, and to fully benefit from future potential volume and
premiumisation opportunities.
The Transaction is a smaller related party transaction under LR
11.1.10R.
Commenting on today's announcement, Paul Forman, Chief
Executive, said:
"In successful partnership with BBM, Essentra FZE has grown
considerably over the last six years as the demand for the special
filters in the Middle East has increased. As this market trend is
expected to be maintained, the acquisition of BBM's minority stake
in the joint venture will allow us to expand the Dubai facility
into a regional hub and to capture the full potential of this
growth region for the benefit of Essentra shareholders."
Enquiries
Essentra plc Tulchan Communications LLP
Joanna Speed, Investor Relations Martin Robinson
Director Guy Bates
Lucy Yank, Group Communications Tel: +44 (0)20 7353 4200
Director
Tel: +44 (0)1908 359100
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 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 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 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.
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
ACQUKSVRKBAOARR
(END) Dow Jones Newswires
March 19, 2019 03:02 ET (07:02 GMT)
Essentra (LSE:ESNT)
Historical Stock Chart
From Apr 2024 to May 2024
Essentra (LSE:ESNT)
Historical Stock Chart
From May 2023 to May 2024