19th Mar 2019 08:58
LONDON (Alliance News) - Essentra PLC on Tuesday said it agreed to buy the 49% minority interest in its Filters joint venture in the Middle East from Aberdeen International FZE, a part of the tobacco firm BBM Bommidala Group.
The FTSE 250-listed plastic and fibre products supplier said it will undertake an acquisition, worth GBP11.6 million, through its subsidiary Essentra FZE, which undertakes the company's Filters activities in Dubai.
Since it was established in 2013, Essentra FZE has served the Middle East with an increasingly complex range of special filters, which has resulted in strong revenue and profit growth, Essentra said.
Accordingly, as the region continues to expand, 100% ownership of Essentra FZE will allow the company to further invest in additional capacity and to introduce new processes and products in Dubai, it said.
"In successful partnership with BBM, Essentra FZE has grown considerably over the last six years as the demand for the special filters in the Middle East has increased," said Chief Executive Paul Forman.
"As this market trend is expected to be maintained, the acquisition of BBM's minority stake in the joint venture will allow us to expand the Dubai facility into a regional hub and to capture the full potential of this growth region for the benefit of Essentra shareholders," added Forman.
Essentra shares were trading 1.2% higher on Tuesday at 407.00 pence each.
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