Business
Acquisition of Minority Stake in Filters Division
Acquisition of Minority Stake in Filters Division.
About this update from Essentra Plc
[{"type":"text","content":"\n \nRNS Number : 2725T Essentra plc 19 March 2019 \n\nESSENTRA PLC\n\nACQUISITION OF MINORITY STAKE IN ESSENTRA (MEA) PTE. LTD IN FILTERS DIVISION\nEssentra 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 £11.6m (\"the Transaction\"). Essentra (MEA) Pte. Ltd is the holding company of Essentra FZE, which undertakes the Company's Filters activities in Dubai. \nSince 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. \nThe Transaction is a smaller related party transaction under LR 11.1.10R.\nCommenting on today's announcement, Paul Forman, Chief Executive, said:\n\"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.\"\nEnquiries\n\n\n\nEssentra plc\nJoanna Speed, Investor Relations Director\nLucy Yank, Group Communications Director\nTel: +44 (0)1908 359100\n\n\n\n\n\nTulchan Communications LLP\nMartin Robinson\nGuy Bates\nTel: +44 (0)20 7353 4200\n\n\n\n\n\n\n\n \nNotes to Editors\nAbout Essentra plc\nEssentra 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....