Essentra sells Porous Technologies business

Essentra has signed an agreement to sell its Porous Technologies business to Filtration Group – an affiliate of buyout specialist Madison Industries – in a deal worth £220m.

The FTSE 250 supplier of plastic and fibre products said the consideration will payable on completion of the deal, with proceeds used to pay down existing debt facilities and/or to fund further “value-creating opportunities”.

For the year to the end of December 2015, Porous Technologies generated external revenue of £91.6m and operating profit of £19m.

Chief executive Colin Day said: “"The divestment of Essentra's Porous Technologies business is consistent with our Drive for 2020 strategic objective of active portfolio management, with the aim of creating sustainable, long-term shareholder value.

“As Essentra continues to evolve, the positive characteristics of its Porous Technologies activities fit less well with the company's overall business model and product portfolio. As such, the transaction not only represents compelling value for Essentra shareholders, but also provides our Porous Technologies business with a strong platform for future successful development under the strategic ownership of Filtration Group."