14th Jan 2019 15:06
LONDON (Alliance News) - Plastic and fibre products firm Essentra PLC announced Monday the sale of its Pipe Protection Technologies business for GBP38 million.
PPT has been sold, entirely in cash, to New York-listed National Oilwell Varco Inc. Essentra will use the cash to "further strengthen" its balance sheet.
The business was part of its Specialist Components division, generating operating profit of GBP4.2 million in 2017. Essentra as a group posted operating profit of GBP85 million in 2017 on an adjusted basis.
Chief Executive Paul Forman commented: "As we continue to assess our portfolio of businesses, it is clear that the unique capabilities of PPT can be better developed - both in terms of people and investment resource - by a third party with real strategic strength in the wider oil and gas industry.
"As a result, the transaction not only represents good value for Essentra's shareholders, but also provides our PPT business with a strong platform for future successful growth under the strategic ownership of National Oilwell Varco."
Essentra shares were down 1.4% Monday afternoon at 364.60 pence each.
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