Essentra plc has signed an agreement to divest its Porous Technologies business to Filtration Group. The transaction values Porous Technologies at GBP 220 million ($290 million), free of cash and debt. Filtration Group is an affiliate of Madison Industries.
The consideration, which is subject to customary adjustments for net debt and working capital at closing, will be payable on completion of the transaction (excluding the promissory note), with proceeds being used to pay down existing debt facilities and / or to fund further value-creating acquisitions. Completion is subject to customary closing conditions, including clearance from certain competition authorities as well as a necessary corporate reorganisation to dispose of the Porous Technologies business in certain jurisdictions, which are anticipated to be satisfied by 1Q 2017.
The acquisition of Essentra’s Porous Technologies business is expected to expand Filtration Group’s customer base and product portfolio.
Colin Day, Chief Executive, said: “The divestment of Essentra’s Porous Technologies business is consistent with our Drive for 2020 strategic objective of active portfolio management, with the aim of creating sustainable, long-term shareholder value.”
Essentra is a leading international supplier of specialist plastic, fibre, foam and packaging products with three Strategic Business Units: Component Solutions, Health & Personal Care Packaging and Filtration Products.
