Business
Sale of Packaging Business
Sale of Packaging Business.
About this update from Essentra Plc
[{"type":"text","content":"\n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n \n ESSENTRA PLC\n \n \n \n \n A leading global provider of essential components and solutions\n \n \n \n \n \n \n \n \n \n SALE OF PACKAGING BUSINESS TO MAYR-MELNHOF\n \n \n \n \n \n \n In line with the previously announced strategic review, Essentra plc (\"Essentra\" or the \"Company\") today announces the disposal of ESNT Packaging & Securing Solutions Limited and Essentra Packaging US Inc and their respective subsidiary companies (\"Packaging\") to Mayr-Melnhof Group (\"MM\"), a leading producer of carton board and folding cartons based in Austria, for a cash consideration of £3121 million, on a cash-free, debt-free basis and subject to customary adjustments.\n \n \n \n \n \n The transaction is subject to various conditions which are set out further below including a shareholder vote for Essentra. The Class 1 circular and notice of General Meeting will be published in due course with the transaction set to complete in Q4 2022.\n \n \n \n \n \n The Board intends to use the proceeds to further strengthen Essentra's balance sheet, and make a small contribution to Essentra's defined benefit pension schemes.\n \n \n \n \n \n The strategic review of Essentra's Filters division is progressing in line with expectations and, following the conclusion of this review, the Board will determine the best use of cash on the Company's balance sheet, carefully taking into consideration the imperative of maximising shareholder value after allowing for sufficient flexibility of the Components business to pursue value creating opportunities.\n \n \n \n \n \n Commenting on today's announcement, Paul Forman, Chief Executive said:\n \n \n \n \n \n \n \"The sale of Packaging marks a significant step on our journey to become a pure play Components business.\n \n \n A substantial amount of work has gone into improving the Packaging division over the last few years and I would like to thank all colleagues for their commitment and hard work whilst part of Essentra. I wish them all the best for the future. I...