The transaction will be funded in part by a placing of up to 23.66 million new ordinary shares; the balance will be funded from existing facilities. Completion is subject to customary closing conditions, including clearance from certain competition authorities, which are anticipated to be satisfied in Q1 2015.
With this acquisition, Essentra will strengthen its position in the pharmaceutical and health & personal care end-markets and expand its geographical footprint. Clondalkin SPD has 24 facilities in North America and Europe. Its product portfolio comprises folding carton, product literature and labels. For the year ended December 2013, Clondalkin SPD generated revenue of US$ 428.9 million, EBITDA of US$ 55.5 million.
Cost synergies arising from the transaction, and associated reconfiguration of the wider Group, are anticipated to be at least US$16 million in 2016.
Commenting on the transaction, Colin Day, Chief Executive, said: “The acquisition of Clondalkin SPD is a compelling strategic and complementary fit for Essentra, which transforms our existing geographical capabilities to pharmaceutical and healthcare customers who are increasingly seeking a global partner for their packaging requirements.”
