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Essentra to Divest Porous Technologies Business to Filtration Group in GBP 220m Deal.

M2 EQUITYBITES-August 25, 2016-Essentra to Divest Porous Technologies Business to Filtration Group in GBP 220m Deal

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25 August 2016 - UK-based plastic and fibre products company Essentra plc (LSE: ESNT) has signed an agreement to divest its Porous Technologies fluid handling components business to US-based air, food, and water filtration company Filtration Group, the company said.

The transaction values Porous Technologies at USD 296.8m (GBP 220m), of which (of which USD 283.6m (around GBP 215m) in cash and USD 6.6m (around GBP5m) in the form of a promissory note payable three years from completion), free of cash and debt.

This consideration, which is subject to customary adjustments for net debt and working capital at closing, will be payable on completion of the transaction (excluding the promissory note), with proceeds being used to pay down existing debt facilities or to fund further value-creating acquisitions or both.

Completion is subject to customary closing conditions.

Filtration Group employs technology to develop filtration solutions for its customers, with offerings that span life science, process technologies, fluid and environmental air applications.

Essentra provides essential components and solutions by focusing on the light manufacture and distribution of high volume, enabling components which serve customers in a range of end-markets and geographies.

Its global network extends to 33 countries and includes 9,000 employees, 53 principal manufacturing facilities, 64 sales and distribution operations and 5 research and development centres.

Essentra Porous Technologies develops and makes custom fluid handling components, engineered from a portfolio of technologies that includes bonded and non-woven fibre, polyurethane foam and porous plastics.

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Publication:M2 EquityBites (EQB)
Date:Aug 25, 2016
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