20th Jun 2019 08:39
(Alliance News) - FTSE 250-listed plastic and fibre products maker Essentra PLC said Thursday it agreed to sell its speciality tapes business to OpenGate Capital for USD77 million, around GBP61 million.
Essentra explained the all-cash sale will be free of debt and cash, with the proceeds to be used to strengthen the balance sheet of the firm.
In 2018, the speciality tapes business delivered GBP7.8 million in operating profit. During the same period, Essentra generated GBP47 million in operating profit on revenue of GBP1.03 billion.
"The sale of Speciality Tapes represents another significant move in the simplification of our portfolio," Essentra Chief Executive Officer Paul Forman said.
"With OpenGate having the investment resource to build on the unique capabilities of Speciality Tapes and to further diversify its end-market exposure, the transaction both represents good value for Essentra's shareholders and provides the business with a strong platform for future successful growth," Forman added.
Shares in Essentra were 0.5% higher at 418.40 pence in London on Thursday.
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