The Porous Technologies division makes a range of components used in cleanroom wipes, medical diagnostics tests, advanced wound care pads, inkjet printer cartridges, writing instruments and air fresheners
Essentra has signed a deal to divest its Porous Technologies business to Filtration Group.
The transaction values Porous Technologies at £220m (of which about £215m in cash and around £5m in the form of a promissory note payable three years from completion), free of cash and debt.
Completion is subject to customary closing conditions, including clearance from certain competition authorities as well as a necessary corporate reorganisation to dispose of the Porous Technologies business in certain jurisdictions that are anticipated to be satisfied by Q1 2017.
Filtration Group is an affiliate of Madison Industries. With a global footprint of 80 facilities in over 20 countries, it develops filtration solutions for a diverse set of customers that span life science, process technologies, fluid and environmental air applications.
Colin Day, Essentra's Chief Executive, said: 'As Essentra continues to evolve, the positive characteristics of its Porous Technologies activities fit less well with the company’s overall business model and product portfolio. As such, the transaction not only represents compelling value for Essentra shareholders, but also provides our Porous Technologies business with a strong platform for future successful development under the strategic ownership of Filtration Group.'
Essentra's diverse range of manufacturing divisions include: Health & Personal Care Packaging, Pipe Protection Technologies, Extrusion, Security, Speciality Tapes and Filtration Products.