Essentra buys US knob and handle manufacturer Innovative Components

Essentra has bought US knob and handle manufacturer Innovative Components for an undisclosed sum in a deal that is expected to be immediately earnings-enhancing.

Based in Chicago, Innovative Components makes and distributes knobs, pins and handles in North America for a broad range of end markets. Essentra said the acquisition will build on its components division's product offering in the US and provide range extension opportunities in Europe and Asia, while adding "attractive low-cost" manufacturing capability in Costa Rica.

For the year to the end of December 2018, Innovative Components generated revenue of about $11m.

Chief executive Paul Forman said: "Innovative Components is a strong strategic fit with our own successful hardware business and another example of the attractive acquisition opportunities available to our Components division.

"As the last few months have demonstrated, we are continuing to combine the successful stabilisation of our businesses to generate stable organic growth with the active management of our portfolio."

At 0805 BST, the shares were up 1.3% at 426p.