Essentra has acquired 100% of the share capital of Micro Plastics for an undisclosed cash consideration.
Based 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.
For 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.
Commenting on announcement, Paul Forman, Chief Executive, said: “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.”
Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions. 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.