11th Jun 2019 09:35
LONDON (Alliance News) - Essentra PLC on Tuesday said is has divested its Extrusion business to Inter Primo AS in a deal which values Extrusion at EUR16.2 million free of cash and debt.
The consideration is subject to adjustments for working capital and net debt and has been settled in cash. Proceeds from the Extrusion sale will be used to strengthen components manufacturer and distributor Essentra's balance sheet.
Essentra Extrusion supplies plastic extrusions - where plastic is melted and formed into the desired shape using a piece of equipment called an extruder - and is part of Essentra's Specialist Components division. In 2018, Extrusion's operating profit was GBP1.2 million.
"The sale of Extrusion not only represents good value for Essentra's shareholders but also provides the business with a strong platform for future successful growth given Inter Primo's established presence in the extrusion industry," said Essentra Chief Executive Paul Forman.
Shares in Essentra were down 0.3% at 404.00 pence on Tuesday morning.
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