Filtrona acquires Richco for $110m

Filtrona, an international supplier of speciality plastic and fibre products, has acquired of 100% of the share capital of plastics manufacturer Richco for a cash consideration of $110m. The amount is payable on completion of the transaction to various Richardson family trusts. Richco generates over 70% of its revenues outside North America, with management, manufacturing, engineering and sales and marketing in North America, Europe and Asia. For the year ended 31 December 2010, Richco generated net sales of $71.4m, earnings before interest, taxation, depreciation and amortisation (EBITDA) of $11.9m. Richco's estimates for the current calendar year indicate net sales in the region of $78.0m and earnings before interest, tax, depreciation and amortisation of around $12.5m. Commenting on the acquisition, which will be immediately earnings enhancing to Filtrona, chief executive Colin Day said: "The acquisition of Richco is consistent with the company's Vision 2015 strategy of complementing balanced organic growth with value-adding acquisitions. "Not only does Richco expand our product range in plastic fastening and cable management products, but also it gives us broader access to new, attractive growth end markets such as consumer electronics. "In addition, Richco consolidates our position in existing geographies, as well as gives us access to certain new markets in which the PFP division is not currently present in both Europe and Asia." NR