Essentra plc (LON:ESNT) today announced the divestment of its Pipe Protection Technologies business to certain wholly-owned subsidiaries of National Oilwell Varco, Inc. The Transaction values PPT at US$48.0m (approximately £38m), free of cash and debt.
The consideration, which is subject to customary adjustments for net debt and working capital, has been satisfied fully in cash. The Board intends to use the proceeds to further strengthen Essentra’s balance sheet.
The PPT business forms part of Essentra’s Specialist Components division. For the year ended 31 December 2017, PPT delivered operating profit of £4.2m. As at 30 June 2018, the gross assets of PPT were £41.8m.
Commenting on today’s announcement, Paul Forman, Essentra Chief Executive said:
“As we continue to assess our portfolio of businesses, it is clear that the unique capabilities of PPT can be better developed – both in terms of people and investment resource – by a third party with real strategic strength in the wider oil and gas industry.
As a result, the transaction not only represents good value for Essentra’s shareholders, but also provides our PPT business with a strong platform for future successful growth under the strategic ownership of NOV.”