UK-based Essentra acquires Micro Plastics Inc., deal includes a plant in Monterrey
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Essentra, a UK-based supplier of plastic and fiber products, announced it has acquired for an undisclosed amount 100% of the share capital of Micro Plastics Inc., an Arkansas-based manufacturer of nylon fasteners and other plastic components for a wide range of industrial markets, including general industrial, automotive and appliances sectors.
According to Essentra, the acquisition would expand the division's product range and adds manufacturing capacity in the U.S. and Monterrey, Mexico.
During the first half of 2017, Micro Plastics generated revenue of US$ 26.8 million and adjusted earnings before interest and taxation of US$ 1.7 million. Micro Plastics was being acquired on a cash-free, debt-free basis, funded from existing credit facilities. The transaction is expected to enhance Essentra’s earnings immediately.
“The acquisition of Micro Plastics is consistent with our strategic objective in components of identifying value-adding acquisition growth opportunities to consolidate our position as an expert manufacturer and distributor of a wide range of low cost components,” said Essentra chief executive Paul Forman.
“As a leading provider of fasteners, Micro Plastics significantly enhances our offering in the US for one of our core product ranges and adds custom injection molding capability, as well as providing compelling cross-selling potential,” Forman added. “In addition, through the site in Monterrey, we will extend our manufacturing footprint and gain access to a number of high-growth end-markets in Mexico.”
Essentra already operates a manufacturing facility in Veracruz, where the company produces pipe and flange protection productos for the oil and gas industry.