Essentra Regulatory News (ESNT)

ESSENTRA PLC

("Essentra", the "Group" or the "Company")

ACQUISITION OF DEVICE TECHNOLOGIES LLC

Essentra plc, a leading global provider and manufacturer of essential components and solutions, is pleased to announce the acquisition of Device Technologies LLC. ("Device Technologies"), a family-owned, US-based designer, manufacturer and distributor of specialty cable protection devices for an initial cash consideration of $6.7m (the "acquisition").

Based in Massachusetts, Device Technologies has over 40 years of operational history and a strong track record of growth. Essentra has extensive knowledge of working with Device Technologies, through a successful distribution partnership spanning a number of years. The company designs, manufactures and distributes a broad range of specialty cable protection devices such as grommet edging, shielding gaskets and cable sleeving, which complement Essentra's existing product expertise. With a well-established presence in the U.S. and exposure to Essentra's target customer sectors, including energy transformation, transportation and general industrial markets, Device Technologies provides a strong adjacency to Essentra's electronics, cable management and access hardware product ranges.

The acquisition is fully aligned with the Group's disciplined approach to inorganic growth, both in terms of strategic alignment and in delivering financial returns. The acquisition represents a strategic in-sourcing of manufacturing capabilities, deepens product knowledge, and extends Essentra's manufactured product offering. In line with the Group's acquisition criteria, Device Technologies is expected to deliver attractive revenue synergies through cross-selling opportunities into EMEA and APAC where Device Technologies today has limited presence.

The total consideration comprises an initial cash payment of $6.7m and deferred contingent cash consideration1 of up to $1.2m, on a cash-free, debt-free basis. For the year ended 31 December 2024, Device Technologies generated revenues of approximately $6.5m. The initial consideration represents an acquisition multiple of 6.6x EBITDA for the last-twelve-months to June 2025, which is within Essentra's targeted range. A return on invested capital2 of 15% is anticipated within three years, in keeping with the Group's acquisition criteria.

Post-acquisition, Essentra's balance sheet remains strong, with FY25 pro forma net debt position expected to be below 1.5x.

Scott Fawcett, CEO of Essentra, said:

"I am delighted to announce the acquisition of Device Technologies, which strengthens Essentra's product portfolio, expands our presence in the Americas, and unlocks further cross-selling opportunities across the Group. This transaction is a clear example of our inorganic growth strategy in action, leveraging our strong balance sheet to drive product expansion and market share gains. We are pleased to welcome another high-quality business, with a strong track record of growth into the Essentra Group, which will be accretive to both earnings and margins and support our strategy for long-term sustainable value creation."

Enquiries

Notes

1. Deferred contingent consideration is subject to certain performance conditions over a one-year period.

2. Return on Invested Capital is calculated as adjusted operating profit expressed as a percentage of invested capital. Invested capital is defined as initial consideration and deferred contingent consideration, plus capex investment, and associated acquisition transaction fees.

More information on Device Technologies Inc. can be found on its website at: www.devicetech.com

About Essentra plc

Essentra plc is a leading global provider of essential components and solutions, focusing on the manufacture and distribution of plastic injection moulded, vinyl dip moulded and metal items.

Headquartered in the United Kingdom, Essentra's global network extends to 28 countries worldwide and includes c.3,000 employees, 14 manufacturing facilities, 26 distribution centres and 37 sales & service centres serving c.64,000 customers with a rapid supply of low cost but essential products for a variety of applications in industries such as equipment manufacturing, automotive, fabrication, electronics, medical and renewable energy. For further information, please visit www.essentraplc.com

LEI: 5493007MOZNA03BVNE96

Cautionary forward-looking statement

These results contain forward-looking statements based on current expectations and assumptions. Various known and unknown risks, uncertainties and other factors may cause actual results to differ from future results or developments expressed or implied from the forward-looking statements. Each forward-looking statement speaks only as of the date of this document. The Company accepts no obligation to revise or update these forward-looking statements publicly or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.