Acquisition of Innovative Components

RNS Number : 5659D

Essentra plc

27 June 2019

 

ESSENTRA PLC

ACQUISITION OF INNOVATIVE COMPONENTS IN COMPONENTS DIVISION

Essentra plc ("Essentra" or the "Company") today announces it has acquired 100% of the share capital of Innovative Components Inc. and Componentes Innovadores Limitada for an undisclosed cash consideration.

Headquartered in Chicago, US, Innovative Components is one of the leading manufacturers and distributors of knobs, pins and handles in North America for a broad range of end-markets, and will be reported under the Company's Components division.  The acquisition of Innovative Components builds the division's product offering in the US, provides range extension opportunities in Europe and Asia and adds attractive low-cost manufacturing capability in Costa Rica.

For the year ended 31 December 2018, Innovative Components generated revenue of c. US$11m.  Innovative Components 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 today's announcement, Paul Forman, Chief Executive, said:

"As a leading provider of knobs, pins and handles, Innovative Components both strengthens and extends our product range while adding further valuable manufacturing capacity in the Americas.  Innovative Components is a strong strategic fit with our own successful hardware business and another example of the attractive acquisition opportunities available to our Components division.  As the last few months has demonstrated, we are continuing to combine the successful stabilisation of our businesses to generate stable organic growth with the active management of our portfolio."

Enquiries

Essentra plc Joanna Speed, Investor Relations Director Lucy Yank, Group Communications Director Tel: [phone]

Tulchan Communications LLP Martin Robinson Lisa Jarrett-Kerr Sophia Martin-Pavlou Tel: [phone]

Notes to Editors

About Essentra plc

Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions.  Organised into four divisions - 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.

Essentra Components

Essentra Components is a global market leading manufacturer and distributor of plastic injection moulded, vinyl dip moulded and metal items.  Operating in 29 countries worldwide, 14 manufacturing facilities and 29 logistics centres serve more than 85,000 customers with a rapid supply of low cost but essential products for a variety of applications in industries such as equipment manufacturing, automotive, fabrication, electronics and construction.

Essentra Packaging

Essentra Packaging is one of only two multicontinental suppliers of a full secondary packaging range to the health and personal care sectors, with 22 facilities across four geographic regions.  The division's innovative products include cartons, leaflets, self-adhesive labels and printed foils used in blister packs, which help customers to meet the rapidly-changing requirements of these end-markets and can also be combined with Essentra's authentication solutions to help the fight against counterfeiting.

Essentra Filters

Essentra Filters is the only global independent cigarette filter supplier.  The seven worldwide locations, plus a dedicated Technology Centre supported by three regional development facilities, provide a flexible infrastructure strategically positioned to serve the tobacco sector.  The business supplies a wide range of value-adding high quality innovative filters, packaging solutions to the roll your own segment and analytical laboratory services for ingredient measurement to the industry: Essentra's offering also includes e-cigarette and Heat Not Burn solutions to the rapidly evolving market for Next Generation Products.

Essentra Specialist Components

Essentra Specialist Components comprises the Company's three smaller businesses and these activities largely have strong positions in the markets in which they operate.

The Tear Tapes business is globally recognised as the leading manufacturer and supplier of pressure-sensitive tear tapes, which are largely used in the tobacco, food and drink and specialist packaging sectors. 

The Industrial Supply business provides a wide range of branded hardware supplies to a broad base of industrial customers, largely located in the US Mid-West.

The Card Solutions business is a leading European provider of ID card printers, systems and accessories to direct and trade customers.

Headquartered in the United Kingdom, Essentra's global network extends to 34 countries and includes c. 8,000 employees, c. 45 principal manufacturing facilities, c. 30 sales & distribution operations and 4 research & development centres. For further information, please visit www.essentraplc.com.

 

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