Essentra Regulatory News (ESNT)

ESSENTRA PLC

SETTLEMENT WITH US DEPARTMENT OF JUSTICE

Essentra PLC ("Essentra" or the "Company") today announces that its subsidiary entity, Essentra FZE Company Limited ("Essentra FZE") has reached a public settlement with the US Department of Justice ("DoJ"), and under the terms of a Deferred Prosecution Agreement ("DPA") with the DoJ, as well as a corresponding settlement with the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC"), has agreed to pay a cash penalty of US $666,543.88 (c£530,000 at the current exchange rate).

This settlement resolves the DoJ's and OFAC's investigation into a small number of unauthorised transactions engaged in during 2018 by two employees of Essentra FZE (which undertakes Essentra's Filters activities in Dubai) and linked to North Korea. None of the transactions were approved or known by senior management outside of the UAE and both employees have since been exited from the business. As reported in the Company's 2019 Annual Report, Essentra has cooperated fully with the DoJ and OFAC during the investigation.

Separately, as disclosed in Essentra's 2019 Full Year Results announcement and Annual Report, the Company has made a voluntary disclosure to OFAC, with regards to certain historic transactions dating as far back as 2015.

Essentra is committed to doing business the right way to continually earn the trust of its customers, other stakeholders and the wider marketplace. Essentra takes compliance with sanctions very seriously and has a programme in place designed to ensure compliance with applicable sanctions. These issues arose as a result of isolated failures to follow the programme and, in response, Essentra has taken swift action to strengthen the control processes in place to ensure that such activity does not take place in the future.

Commenting on today's announcement, Paul Forman, Chief Executive said:

"A very thorough and in depth investigation has been carried out to fully understand the root cause of the issues we have seen. We have made a very significant investment of both time and money, which has now equipped us with enhanced protection against any potential future issues of this nature".

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About Essentra plc

Essentra plc is a FTSE 250 company and a leading global provider of essential components and solutions. Organised into three global divisions, Essentra focuses on the light manufacture and distribution of high volume, enabling components which serve customers in a wide variety of end-markets and geographies.

Headquartered in the United Kingdom, Essentra's global network extends to 34 countries and includes 7,552 employees, 50 principal manufacturing facilities, 34 sales & distribution operations and 4 research & development centres. For further information, please visit www.essentraplc.com.

Essentra Components

Essentra Components is a global market leading manufacturer and distributor of plastic injection moulded, vinyl dip moulded and metal items. Operating in 29 countries worldwide, 14 manufacturing facilities and 29 logistics centres serve more than 85,000 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 and construction. The division also includes the Reid Supply business, which provides a wide range of branded hardware supplies to a broad base of industrial customers, largely located in the US Mid-West.

Essentra Packaging

Essentra Packaging is one of only two multicontinental suppliers of a full secondary packaging range to the health and personal care sectors, with 24 facilities across four geographic regions. The division's innovative products include cartons, leaflets, self-adhesive labels and printed foils used in blister packs, which help customers to meet the rapidly-changing requirements of these end-markets and can also be combined with Essentra's authentication solutions to help the fight against counterfeiting.

Essentra Filters

Essentra Filters is the only global independent cigarette filter supplier. The seven worldwide locations, plus a dedicated Technology Centre supported by three regional development facilities, provide a flexible infrastructure strategically positioned to serve the tobacco sector. The business supplies a wide range of value-adding high quality innovative filters, packaging solutions to the roll your own segment and analytical laboratory services for ingredient measurement to the industry: Essentra's offering also includes Heat Not Burn and e-cigarette solutions to the rapidly evolving market for Next Generation Products. The division now also includes the Tear Tapes business, which is globally recognised as the leading manufacturer and supplier of pressure-sensitive tear tapes, that are largely used in the tobacco, food and drink and specialist packaging sectors.