The Company completed the acquisition of Innovative Components for an undisclosed cash-free, debt-free consideration funded from ‘existing facilities’, and said it would report its new addition under its components division. ICs manufacturers pins, handles and knobs in the North American market.
Attached to the update, Essentra posted ICs’ revenues for the full-year ended 31 December 2018, which stood at $11 million.
“Essentra plc (“Essentra” or the “Company”) today announces it has acquired 100% of the share capital of Innovative Components Inc. and Componentes Innovadores Limitada for an undisclosed cash consideration.”
“Headquartered in Chicago, US, Innovative Components is one of the leading manufacturers and distributors of knobs, pins and handles in North America for a broad range of end-markets, and will be reported under the Company’s Components division. The acquisition of Innovative Components builds the division’s product offering in the US, provides range extension opportunities in Europe and Asia and adds attractive low-cost manufacturing capability in Costa Rica.”
In response to the update, Company Chief Executive Paul Forman, said,
“As a leading provider of knobs, pins and handles, Innovative Components both strengthens and extends our product range while adding further valuable manufacturing capacity in the Americas. Innovative Components is a strong strategic fit with our own successful hardware business and another example of the attractive acquisition opportunities available to our Components division. As the last few months has demonstrated, we are continuing to combine the successful stabilisation of our businesses to generate stable organic growth with the active management of our portfolio.
In early morning trading on Thursday, the Company’s share price rallied modestly 0.19% or 0.8p to 421.2p a share. Analysts from Numis, Peel Hunt and Deutsche Bank were in consensus, with all three reiterating their ‘Buy’ stance on Essentra stock.