Essentra Sells Packaging Business To Austrian Firm Mayr-Melnhof For 3.12 Bln Pounds In Cash

Essentra Plc (FLRAF), a packaging solutions provider, said on Friday that it has sold its ESNT Packaging & Securing Solutions Limited, Essentra Packaging US Inc, and their respective subsidiaries to Mayr-Melnhof Group, an Austrian carton maker, for a cash consideration of 3,121 million pounds, on a cash-free, debt-free basis.

The transaction is expected to be closed in the fourth quarter.

The seller intends to use the proceeds from sale to further strengthen its balance sheet, and make a small contribution to Essentra's defined benefit pension schemes.

In addition to sales of its packaging arms, the company said, "The strategic review of Essentra's Filters division is progressing in line with expectations and, following the conclusion of this review, the Board will determine the best use of cash on the company's balance sheet, carefully taking into consideration the imperative of maximising shareholder value after allowing for sufficient flexibility of the components business to pursue value creating opportunities."

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