Business
Acquisition of BMP TAPPI
Acquisition of BMP TAPPI.
About this update from Essentra Plc
[{"type":"text","content":"\n\nEssentra PLC\n(\"Essentra\" the \"Company\" or the \"Group\")\n \nAcquisition of BMP TAPPI\n \nEssentra plc, a leading global provider of essential components and solutions, is pleased to announce the acquisition of BMP s.r.l (\"BMP TAPPI\"), a family-owned, leading Italian manufacturer and distributor of protective caps and plugs for an initial cash consideration of EUR33.5m, in line with its inorganic growth strategy previously communicated at the Capital Markets event in November 2022.\n \nBased in Milan, Italy, BMP TAPPI has over 60 years of history and a track-record of consistent growth. BMP TAPPI manufactures and distributes an extensive range of protective caps and plugs from their Italian based facilities, serving thousands of customers predominantly across Europe, in multiple end-markets, including mechanical, automotive and pharmaceutical sectors, and has been a trading partner to Essentra for over 20 years, with a well-established relationship. With over 100 injection moulding machines and located in a modern facility, BMP TAPPI's strong market position is well-invested, and further enhanced by its R&D capabilities focusing on developing more sustainable products, and a number of sustainably sourced products are already included within its current range.\n \nBMP TAPPI is a complementary and strategically aligned bolt-on acquisition, demonstrating the continued momentum of Essentra's disciplined inorganic strategy, following the successful acquisition and integration of the Wixroyd Group in December 2022. In line with the Group's acquisition criteria, BMP TAPPI will strengthen and enhance the Group's existing core, profitable product range, further expand the Group's manufacturing footprint in Europe, and deliver attractive cost and revenue synergies through cross-selling opportunities into both the Essentra and BMP TAPPI customer base. BMP TAPPI will be led by Essentra's established Italian management team, who have successfully led the Group's existing business in Bologna since the acquisition of the Richco business in 2011, providing a strong base from which Essentra has been able to grow.\n \nThe consideration payable comprises an initial cash consideration of EUR33.5m, and deferred contingent consideration1 of up to EUR3.5m on a cash-free, debt-free basis. For the year ended 31 De...