Essentra plc has acquired 100% of the share capital of Nolato Hertila AB for a cash consideration of approximately SEK 58m (c. £4.9m).
Based in Sweden, Hertila is a leading manufacturer and distributor of caps and plugs and other plastic components for a wide range of industrial end markets – including automotive, mining, coating, hydraulics and medical – and will be reported under the Company’s Components division. The acquisition of Hertila not only expands the division’s product range but also adds manufacturing capacity in Scandinavia, complementing Essentra’s existing facility in Sweden.
For the year ended 31 December 2017, Hertila generated revenue of SEK 39.9m (c. £3.4m). Hertila has been acquired on a cash-free, debt-free basis, funded from existing facilities, and the transaction will be immediately earnings enhancing to the Company.
Paul Forman, Essentra Chief Executive, commented:
"The acquisition of Hertila is a further example of our Components division strategy being put into action, following on from the Micro Plastics transaction at the end of last year, where the integration is in line with expectations. As a leading provider of caps and plugs, Hertila strengthens one of our core product ranges, adds valuable injection moulding capability in Northern Europe and provides attractive opportunities for cross-selling, making it a great strategic fit with our own business."
About Essentra plc
Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions. Organised into four divisions from the start of 2018 - reflecting the Company’s strategic review - Essentra focuses on the light manufacture and distribution of high volume, enabling components which serve customers in a wide variety of end-markets and geographies.
Essentra Components is a global market leading manufacturer and distributor of plastic injection moulded, vinyl dip moulded and metal items. Operating in 27 countries worldwide, nine manufacturing facilities and 24 logistics centres serve more than 90,000 customers with a rapid supply of low cost but essential products for a variety of applications in industries such as equipment manufacturing, automotive, fabrication, electronics and construction.