LONDON (ShareCast) - (Sharecast News) - Essentra has acquired 100% of the share capital of Nolato Hertila for a cash consideration of around SEK 58m (£4.9m), subject to customary adjustments, it announced on Friday.
The FTSE 250 firm described the Sweden-based Hertila as a "leading manufacturer and distributor" of caps and plugs and other plastic components for a range of industrial end markets including automotive, mining, coating, hydraulics and medical, and would be reported under its components division.

It said the acquisition of Hertila not only expanded the division's product range, but also added manufacturing capacity in Scandinavia, complementing Essentra's existing facility in Sweden.

For the year ended 31 December, Hertila generated revenue of SEK 39.9m (£3.4m).

Hertila was acquired on a cash-free, debt-free basis, funded from existing facilities, with the transaction set to be immediately earnings-enhancing to Essentra.

"The acquisition of Hertila is a further example of our components division strategy being put into action, following on from the Micro Plastics transaction at the end of last year, where the integration is in line with expectations," said Essentra chief executive Paul Forman.

"As a leading provider of caps and plugs, Hertila strengthens one of our core product ranges, adds valuable injection moulding capability in Northern Europe and provides attractive opportunities for cross-selling, making it a great strategic fit with our own business."

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