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(Alliance News) - Essentra PLC on Monday said it completed the sale of Essentra Filter Holdings Ltd to a subsidiary of Centaury Management Ltd.
The Milton Keynes, England-based components, packaging and filter producer sold its Filter division, an independent cigarette filter supplier, to Frank Acquisition Four Ltd following shareholder approval.
Essentra announced the sale in October, and the deal comprises around GBP200 million initial consideration due on completion on a cash-free, debt-free basis, and a GBP20 million deferred earn-out consideration.
Essentra said it plans to use the proceeds to reduce its debt position and to make a small contribution to its benefit pension schemes.
Essentra sold its Packaging business, including ESNT Packaging & Securing Solutions Ltd and Essentra Packaging US Inc along with its subsidiaries, to paper and packaging firm Mayr-Melnhof Group for GBP312.0 million in June 2022.
Essentra had previously said it plans to return GBP150 million in proceeds from the disposals of both Filters and Packaging to shareholders via a special dividend, once the transactions are completed.
The disposals are in line with the firm's intention to become a solely components-based business.
Essentra shares were down 0.6% to 248.50 pence on Monday at midday in London.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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