Essentra sells PPT business to Texas-based National Oilwell Varco

Plastic and fibre products supplier Essentra has disposed of its Pipe Protection Technologies business to subsidiaries of Texas-based oil and gas equipment and components provider National Oilwell Varco.

Essentra said it plans to use the cash proceeds from the transaction, which values the PPT business at $48m (£38m), to further strengthen its balance sheet.

For the year to the end of December 2017, the PPT business - part of Essentra's Specialist Components division - delivered operating profit of £4.2m.

Chief executive Paul Forman said: "As we continue to assess our portfolio of businesses, it is clear that the unique capabilities of PPT can be better developed - both in terms of people and investment resource - by a third party with real strategic strength in the wider oil and gas industry.

"As a result, the transaction not only represents good value for Essentra's shareholders, but also provides our PPT business with a strong platform for future successful growth under the strategic ownership of NOV."