Updates

Essentra - Announces sale of filters; special dividend planned

November 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Essentra has announced the sale of the Filters division for an enterprise value of c.£262m, subject to regulatory clearance, or an 8.2x EBITA multiple (for the 12 months to Jun ‘22) with the deal expected to complete in January. Essentra will receive an initial £200m consideration and up to £20m deferred earn-out (payable in 2022 & 2023) with the proceeds used to reduce its pension deficit and pay a £150m special dividend. Management expect zero net debt post-completion. There was no trading update provided but Components, its sole remaining (and highest margin) business, is performing well and a trading statement will be released on 26 October.Nice to see CEO Paul Forman achieve his target to focus on components in tim ...

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