British packaging supplier Essentra PLC (LON:ESNT) has bought US-based Micro Plastics Inc for an undisclosed cash consideration.
The company said the acquisition of Micro Plastics, which manufactures plastic screws, bolts and washers, will expand its product range in the components division.
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With a facility in Monterrey, Mexico, the deal will also see Essentra enter a new market.
For the year ended 30 June 2017, Micro Plastics generated revenue of about US$26.8mln and adjusted underlying earnings (EBIT) of about US$1.7mln.
Essentra, which also supplies plastic and fibre products, has purchased Micro Plastics on a cash-free, debt-free basis, funded from existing facilities. The deal will be “immediately earnings enhancing”, Essentra added.
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“As a leading provider of fasteners, Micro Plastics significantly enhances our offering in the US for one of our core product ranges and adds custom injection moulding capability, as well as providing compelling cross-selling potential,” said Paul Forman, Essentra’s chief executive.
“In addition, through the site in Monterrey, we will extend our manufacturing footprint and gain access to a number of high-growth end-markets - such as white goods and automotives - in Mexico."