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Essentra To Divest Speciality Tapes Business For $77 Mln

Essentra plc. (ESNT.L), a supplier of plastic and fibre products, announced Thursday that it has signed an agreement to divest its Speciality Tapes business, Duraco Specialty Tapes LLC., to certain units of OpenGate Capital. The sale values Speciality Tapes at $77 million or about 61 million pounds, free of cash and debt.

The consideration will be satisfied fully in cash, and will be payable on completion of the transaction. The price is subject to the usual adjustments for net debt and working capital at closing.

The closure of the deal is subject to customary closing conditions. The Board intends to use the proceeds to further strengthen Essentra's balance sheet.

For the year 2018, Speciality Tapes' pro forma operating profit was 7.8 million pounds. At the year end, the gross assets of Speciality Tapes were 54.6 million pounds.

With effect from January 1, the results of the Speciality Tapes Express distribution locations have been included within the Specialist Components division.

Paul Forman, Chief Executive said, "With OpenGate having the investment resource to build on the unique capabilities of Speciality Tapes and to further diversify its end-market exposure, the transaction both represents good value for Essentra's shareholders and provides the business with a strong platform for future successful growth."

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