Business
Acquisition of Micro Plastics in Components
Acquisition of Micro Plastics in Components.
About this update from Essentra Plc
[{"type":"text","content":"\n \nRNS Number : 1900Z Essentra plc 13 December 2017 \n\nESSENTRA PLC\n \nACQUISITION OF MICRO PLASTICS IN COMPONENTS DIVISION\n \nEssentra plc (\"Essentra\" or \"the Company\") today announces that it has acquired 100% of the share capital of Micro Plastics for an undisclosed cash consideration. \nBased 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. \nFor the year ended 30 June 2017, Micro Plastics generated revenue of c. US$26.8m and adjusted1 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.\nCommenting on today's announcement, Paul Forman, Chief Executive, said: \n\"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.\" \n \n1 Before intangible amortisation and exceptional operating items\n \nEnquiries\n\n\n\n\nEssentra plc\nJoanna Speed, Investor Relations Director\nTel: +44 (0)1908 359100\n\n\nOgilvy PR London\nSarah Edwards\nTel: +44 (0)7506 409668\nE-mail: [email protected]\n\n\n\n\nNotes to Editors\nAbout Essentra plc\nEssentra plc is a FTSE 250 company and a l...