ACQUISITION OF RICHCO, INC. FOR US$110M

RNS Number : 3363S

Filtrona plc

18 November 2011

 



18^th November 2011

FILTRONA PLC

("the Company")

A leading international supplier of speciality plastic and fibre products

ACQUISITION OF RICHCO, INC. FOR US$110M

Filtrona plc today announces it has signed an agreement for the acquisition of 100% of the share capital of Richco, Inc. ("Richco") for a cash consideration of US$110m.  The cash consideration, which is subject to customary adjustments and funded from the Company's existing facilities, is payable on completion of the transaction to various Richardson family trusts.  Completion is conditional upon certain administrative provisions, primarily clearance from the German competition authorities, which are anticipated to be satisfied by the beginning of 2012.

Richco is a leading international designer, manufacturer and distributor of engineered plastic and elastomeric solutions for fastening and cable management applications in diverse and growing end markets.  These markets include consumer electronics, industrial, telecom / datacom and white goods / appliances.  Based in the U.S., Richco generates over 70% of its revenues outside North America, with management, manufacturing, engineering and sales and marketing in North America, Europe and Asia.

For the year ended 31 December 2010, Richco generated net sales of US$71.4m, earnings before interest, taxation, depreciation and amortisation ("EBITDA") of US$11.9m and earnings before interest and taxation ("EBIT") of US$8.8m: total assets as at this date were US$37.2m.  For the year ending 31 December 2011, Richco's current estimates indicate net sales in the region of US$78.0m, EBITDA of around US$12.5m and EBIT of c.US$9.5m.  The transaction will be immediately earnings enhancing to Filtrona, and will be reported under the Company's Protection & Finishing Products ("PFP") division.

Commenting on the acquisition, Chief Executive, Colin Day, said:

"The acquisition of Richco is consistent with the Company's Vision 2015 strategy of complementing balanced organic growth with value-adding acquisitions.  Not only does Richco expand our product range in plastic fastening and cable management products, but also it gives us broader access to new, attractive growth end markets such as consumer electronics.  In addition, Richco consolidates our position in existing geographies, as well as gives us access to certain new markets in which the PFP division is not currently present in both Europe and Asia." 

The Company will hold a conference call to discuss the acquisition of Richco at 09:30 (UK time) today, details of which are as follows:

Dial-in number:	[phone] 0800 368 1950 (UK toll free)
PIN code:	123010#
Replay number:	[phone]
	[phone] (US toll free)
Conference reference:	380992#

Enquiries:

Filtrona plc	FTI Consulting
Colin Day: Chief Executive Joanna Speed: Corporate Affairs Director Tel: [phone]	Richard Mountain Nina Delangle Tel: [phone]

Notes to Editors:

About Filtrona plc

Filtrona plc is a leading international supplier of speciality plastic and fibre products. Further information can be found on the website www.filtrona.com.

Protection & Finishing Products

A global market leading provider of product protection and finishing products, manufacturing and distributing plastic injection moulded, dip moulded, adhesive-coated foam and metal products. The division has 42 operating units in 14 countries serving a very broad industrial base of over 115,000 customers with a rapid supply of primarily plastic products for protection and finishing applications in industries such as hydraulics, pneumatics, oil and gas, electrical controls, point of purchase and tubular metal products.

Porous Technologies

The leading global technology developer and manufacturer of custom bonded fibre and hydrophilic foam components. Its components handle fluid and vapour and deliver high value and precision performance to many of the most well-known healthcare, consumer and industrial brand owners in the world. These components are used in a wide range of product applications including medical diagnostics and wound care, inkjet printer cartridges, writing instruments and air fresheners.

Coated & Security Products

The global market leading producer of high quality self-adhesive tear tape and a growing supplier of labels, products and technologies for brand protection, document authentication and personal identification. Customers in over 100 countries are served from facilities operating in seven countries. The division also includes plastic profile extrusion activities in The Netherlands.

Filter Products

The division is the only global independent cigarette filter supplier. The 9 worldwide locations, including a UK-based research facility and three regional development centres provide a flexible infrastructure strategically positioned to serve the tobacco industry. The division supplies a wide range of value adding high quality innovative filters from monoacetate to multi-segment speciality filters with sophisticated adsorbent materials.

About Richco, Inc.

Richco was founded in 1954, and is a privately-owned company based in Chicago, Illinois.  It has global operations, with four manufacturing sites and nine other distribution sites in the U.S., Europe and Asia.  Richco offers both custom-designed parts and 15,000 standard parts across 12 product categories, including cable management, circuit board hardware and cable ties / accessories. 

 

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