Filtrona (LSE: FLTR), the FTSE 250 plastic and fibre products supplier, announced that it would acquire US based Lendell Manufacturing for US$35 million in cash.
Lendell produces speciality hydrophilic foam products for the medical, printing systems and personal care markets, reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $4.2 million.
Filtrona said the acquisition would be earnings accretive ‘immediately’, and would complement its Bonded Fibre Components division.
“It is anticipated that significant synergy benefits will be generated by utilising Filtrona’s existing global manufacturing and commercial footprint to provide access globally for Lendell products within common served markets, such as medical and printer systems,” the company stated.
Filtrona also said the acquisition was in line with its strategy to focus on high margin, high growth sectors.
Mark Harper, Chief Executive of Filtrona, said:
“The acquisition of Lendell is in line with our strategy of focusing acquisition resources on the higher margin, higher growth potential businesses, and will provide a significant enhancement to the capabilities within the newly named Porous Technologies division.
“We anticipate significant benefits from utilising our existing global manufacturing and commercial footprint to access new markets for Lendell products as well as from selling bonded fibre products to existing Lendell customers.”
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The company has been increasing investment to accelerate the development of its technologies