(Alliance News) - Essentra PLC on Thursday said it has agreed a deal to acquire North Carolina-based 3C! Packaging Inc for USD65 million and outlined plans for a GBP100 million equity raise to fund the acquisition.
The plastic and fibre products maker noted that 3C! provides packaging and labels and is focused on the pharmaceutical industry.
"The acquisition meets Essentra's strategic and financial criteria, by creating significant value, strengthening the company's customer proposition and offering significant synergies," Essentra said.
In the year to June 30, 3C! posted revenue of USD48.8 million.
The acquisition will be paid for by a GBP100 million placing, subscription and retail offer, Essentra said.
The total number of shares as part of the fundraise is expected to be about 14% of its share capital.
"The additional funds raised from the fundraise will be used to strengthen the company's balance sheet and to give the company flexibility to pursue other compelling strategic opportunities as and when they arise," Essentra said.
Essentra shares closed 0.8% higher at 285.00 pence each in London on Thursday, giving it a market capitalisation of GBP750.2 million.
By Eric Cunha; ericcunha@alliancenews.com
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Essentra (ESNT)