Essentra sells Extrusion business to Inter Primo

Plastic and fibre products supplier Essentra has sold its Extrusion business to Swedish firm Inter Primo as part of a deal valued at €16.2m, free of cash and debt.

The consideration has already been fully satisfied in cash and Essentra plans to use the funds to further strengthen its balance sheet.

The Extrusion business formed part of Essentra's specialist components division. In the year to 31 December 2018, the unit generated an operating profit of £1.2m.

Chief executive Paul Forman said: "The sale of Extrusion not only represents good value for Essentra's shareholders, but also provides the business with a strong platform for future successful growth given Inter Primo's established presence in the extrusion industry."

At 0815 BST, Essentra shares were up 0.15% at 405.60p.