Essentra buys Turkish firm Mesan Kilit

7th Jan 2014 07:22

Packaging company Essentra has bought Turkish company Mesan Kilit for an undisclosed cash consideration.Mesan, which manufactures locks, hinges, latches and hardware accessories, was purchased on a cash-free, debt-free basis. The acquisition was funded from Essentra's existing facilities. Mesan distributes to a wide range of markets including electricity and power distribution, telecoms, industrial, IT and transportation. The firm exports to more than 75 countries, including to the Middle East and Africa and Asia.The business generated revenue of $19.7m in the year ended December 31st, with a three-year compound annual revenue growth rate in excess of 20%. The transaction is expected to be immediately earnings enhancing, and will be reported under the company's Component and Protection Solutions division.Colin Day, Chief Executive, said: "The acquisition of Mesan is a compelling strategic fit for Essentra, and is consistent with the company's Vision 2015 objective of complementing balanced profitable organic growth with value-adding transactions. "With leading market positions and a proven track record of strong profitable growth, Mesan significantly enhances our offering in the growing hardware segment. In addition, the acquisition not only provides entry into the attractive Turkish market and a number of other fast-growing export markets for our Components business, but it also acts as a platform for the geographic expansion of our other activities in the region."RD