Essentra To Sell Filters Business In A 262.1 Mln Pound Deal

Essentra plc (ESNT), a global provider of essential components and solutions on Monday announced the sale of filters business to Frank Acquisition Four Limited, a unit of Centaury Management Limited, which is owned and controlled by the investment office of the Markus family.

The transaction is valued about 262.1 million pounds, including 100 percent consolidation of certain joint ventures.

The consideration is comprised of approximately 200-million-pound initial consideration due on completion (on a cash-free, debt-free basis) and up to 20-million-pound as earn-out consideration, payable in two tranches of up to 10 million pounds for each of 2022 and 2023.

The transaction is expected to complete no later than 31 January 2023.

The company intends to use the proceeds to make a small contribution to its defined benefit pension schemes and prepay a portion of US private placement debt.

The company also announced its intention to return approximately 150-million-pound to shareholders via a special dividend after the Filters disposal has completed.

Essentra will now be a pure play components business after the deal concludes.

Essentra also announced the completion of the sale of packaging business to Mayr-Melnhof Group on 1 October 2022.

Shares of Essentra closed Friday's trading at 182.60 pence, up 7.40 pence or 4.22 percent from the previous close.

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