Filtrona forms joint venture with tobacco products producer - UPDATE

21st Feb 2013 07:19

Supplier of speciality plastic, fibre and foam products Filtrona has announced the formation of a joint venture with BBM Bommidala Group in the United Arab Emirates to manufacture filters. BBM is a producer of Indian tobacco products and by-products, and a leading cigarette exporter from India. The joint venture, in which Filtrona will be the majority shareholder, is expected to be fully operational during the third quarter of 2013.Colin Day, Chief Executive: "The formation of this joint venture agreement with BBM strengthens Filtrona's presence in the growing Middle Eastern market and underscores our commitment to being a trusted partner to our tobacco customers on a global basis." Filtrona acquires Swedish plastic products distributorThe group also announced that it has acquired 100% of Ulinco Components for an undisclosed cash consideration, which will be funded from its existing facilities. Based in Sweden, Ulinco Components is a leading distributor of plastic protection and finishing products, hardware and specialist masking solutions in the Nordic region, and will be reported under the Component & Protection Solutions division.The purchase was made to expand the group's product range and customer base in that division, and extend its presence in Scandinavia. In the 2012 financial year the firm generated around £5.0m of revenue, and the transaction will be immediately earnings enhancing to Filtrona. The CEO commented: "The acquisition of Ulinco Components is a further indication of the way in which Filtrona is able to augment its balanced organic growth with value-adding transactions. "With its complementary product range and strong service ethos, Ulinco Components is an excellent strategic fit with our Component Distribution businesses and enhances our position in the sizeable Scandinavian market."NR