PRW Published: November 12, 2014 9:35 am ET Updated: November 12, 2014 9:39 am ET
Essentra plc, the United Kingdom-based plastic packaging group, has announced that one of its subsidiaries has bought the Specialist Packaging Division (SPD) of the private equity-owned Clondalkin Group, a Netherlands-based packaging firm.
The acquisition — the largest in Essentra’s history — values the Clondalkin SPD operation at approximately $455 million and is a free of cash, debt, debt-equivalent items and tax assets deal.
The UK business based in Milton Keynes, England, will part fund the deal by placing up to 23.6 million shares — approximately 9.99 percent of the current issued share capital — and the balance from existing facilities.
At the time of writing Essentra’s shares were up 3 percent.
Essentra said buying Clondalkin SPD would boost its presence in the pharmaceutical and healthcare packaging markets, particularly in North America and Europe. The group has 24 facilities in the U.S. and Europe.
Last year Clondalkin SPD posted revenues of $428.9 million, earnings before interest, tax, depreciation and amortization of $55.5 million and earnings before interest and tax of $37.2 million.
Essentra said it expected the deal to be immediately earnings enhancing, with synergies arising from the transactions expected to be in the region of $16 million.
Colin Day, Essentra’s chief executive, said the acquisition was a “compelling strategic and complementary fit” for his firm.
“It transforms our existing geographical capabilities to pharmaceutical and healthcare customers who are increasingly seeking a global partner for their packaging requirements. In addition, Clondalkin SPD substantially enhances Essentra's position in the growing personal care and beauty packaging industry.
“With an experienced management team and proven track record, this acquisition — being the largest in the company's history — underscores Essentra's commitment to building a leading global provider of essential components and solutions in our targeted market categories.”
|