Essentra plc (LON:ESNT) today announced the acquisition of the 49% minority interest in its Filters joint venture, Essentra (MEA) Pte. Ltd, from Aberdeen International FZE for a cash consideration of £11.6m. Essentra (MEA) Pte. Ltd is the holding company of Essentra FZE, which undertakes the Company’s Filters activities in Dubai.
Since it was established in 2013, Essentra FZE has served the attractive markets of the Middle East with an increasingly complex range of special filters, which has resulted in strong revenue and profit growth. Accordingly, as the region continues to expand, 100% ownership of Essentra FZE will allow the Company to further invest in additional capacity and to introduce new processes and products in Dubai, and to fully benefit from future potential volume and premiumisation opportunities.
The Transaction is a smaller related party transaction under LR 11.1.10R.
Commenting on today’s announcement, Paul Forman, Chief Executive, said:
“In successful partnership with BBM, Essentra FZE has grown considerably over the last six years as the demand for the special filters in the Middle East has increased. As this market trend is expected to be maintained, the acquisition of BBM’s minority stake in the joint venture will allow us to expand the Dubai facility into a regional hub and to capture the full potential of this growth region for the benefit of Essentra shareholders.”