24th Sep 2014 10:17
LONDON (Alliance News) - FTSE 250 plastics and fibre products company Essentra PLC Wednesday said it has agreed to buy 100% of the share capital of the major operating subsidiaries of Malaysia-based Abric Berhad in a MYR146 million deal.
Essentra said the acquisition, worth about GBP28 million, will be made via its existing cash resources. It said the deal is expected to be immediately earnings enhancing and will be reported under its Component & Protection Solutions division.
Kuala Lumpur-headquartered Abric manufactures security sealing products and solutions, Essentra said. It reported revenue of MYR79.5 million, or around GBP15 million, for the year to December 31.
"With a strong market position and an experienced management team, Abric is a compelling strategic fit for Essentra," said Essentra Chief Executive Colin Day.
"Not only is its product portfolio applicable to a broad range of attractive end-markets and is highly synergistic with our manufacturing and distribution channels, Abric also significantly expands the division's presence in the fast-growing Asia Pacific region," Day added.
Shares in Essentra were down 0.5% to 803.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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