# Essentra plc Divestment of Speciality Tapes business

- Link: https://www.directorstalkinterviews.com/essentra-plc-divestment-of-speciality-tapes-business/412785603
- Published: 2019-06-20T07:12:28+01:00
- Author: Giles Arbor

**Essentra plc** (LON: ESNT) has today announced it has signed an agreement to divest
its Speciality Tapes business (Duraco Specialty Tapes LLC) to certain wholly-owned
subsidiaries of OpenGate Capital. The Transaction values Speciality Tapes at US$
77m (approximately £61m), free of cash and debt.

The consideration, which is subject to the usual adjustments for net debt and working
capital at closing, will be payable on completion of the transaction and will be
satisfied fully in cash. Completion is subject to customary closing conditions and
the Board intends to use the proceeds to further strengthen Essentra’s balance sheet.

For the year ended 31 December 2018, the pro forma operating profit of the Speciality
Tapes business was £7.8m; of this, c. £4.9m was reported under the Specialist Components
division and c. £2.9m relating to the Speciality Tapes Express distribution locations
in the US was reported under the Components division. As at 31 December 2018, the
gross assets of Speciality Tapes were £54.6m.

With effect from 1 January 2019, the results of the Speciality Tapes Express distribution
locations have been included within the Specialist Components division.

**Commenting on today’s announcement, Paul Forman, Essentra plc Chief Executive 
said:**

> “The sale of Speciality Tapes represents another significant move in the simplification
> of our portfolio. 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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