Essentra to acquire sealing products maker Abric

24th Sep 2014 12:05

Materials producer Essentra has agreed to acquire Malaysian security sealing products maker Abric Berhad for around £28m, which is expected to be immediately earnings enhancing. The FTSE 250 group said it will fund the purchase using its existing facilities and expects to complete the deal during the fourth quarter of 2014.Abric, which is based in Kuala Lumpur, manufactures and distributes security sealing products for a range of growing end-markets, including healthcare, manufacturing and energy across 88 countries.The firm last year reported revenue of around £15m, 40% of which was generated in Asia Pacific.The addition of Abric, which is being bought on a cash-free, debt-free basis, is expected to be immediately earnings enhancing and will be reported under the company's component & protection solutions division.Essentra's chief executive Colin Day said: "With a strong market position and an experienced management team, Abric is a compelling strategic fit for Essentra."Not only is its product portfolio applicable to a broad range of attractive end-markets and is highly synergistic with our manufacturing and distribution channels, Abric also significantly expands the division's presence in the fast-growing Asia Pacific region."