Essentra PLC (LON:ESNT) has acquired a Swedish plastic components maker for around Skr58mln (around £4.9mln) in cash, a deal which the FTSE 250-listed firm expects to be immediately earnings enhancing.
The UK firm said Nolato Hertila AB which distributes and manufactures caps, plugs, and other plastic components and generated revenue of Skr39.9mln (around £3.4mln) for the year ended 31 December 2017, has been acquired on a cash-free, debt-free basis, funded from existing facilities.
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Paul Forman, Essentra’s chief executive, said: "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."