Filtrona acquires Contego Healthcare for 160m pounds

FIL International, the subsidiary of FTSE 250-listed fibre and foam products provider Filtrona has signed an agreement for the acquisition of Contego Healthcare from Maximus Holding II S.Á R.L. and Storey Evans & Company.

FIL International, the subsidiary of FTSE 250-listed fibre and foam products provider Filtrona has signed an agreement for the acquisition of Contego Healthcare from Maximus Holding II S. R.L. and Storey Evans & Company.

The transaction values Contego at approximately £160m on a cash free, debt free basis.

The consideration, which is subject to customary adjustments for net debt and working capital and which will be payable on completion of the transaction, will be funded in part by a placing by way of an accelerated book-build of up to 21,142,613m new ordinary shares, representing 9.99% of Filtrona's current issued share capital excluding treasury shares.

Filtrona said that the balance will be funded from existing debt facilities.

Completion is conditional upon, among other things, clearance from the German competition authorities, which is anticipated to be satisfied by mid-April 2013, the group added.

Contego is a pan-European specialist business, which provides a range of print, packaging and support services to the pharmaceutical and healthcare markets from operational sites across Europe. Its product range includes folding cartons, leaflets, self-adhesive labels and printed foils used in blister packs.

In 2012 on a consolidated basis, Contego generated revenue of £102.7m, earnings before interest, taxation, depreciation and amortisation (EBITDA) of £17.9m and earnings before interest and taxation (EBIT) of £13.9m. As of December 31st, Contego had gross assets of £78.6m.

Commenting on the acquisition, Colin Day, Chief Executive Officer of Filtrona, said: "The acquisition of Contego is a compelling strategic and complementary fit for Filtrona, as the company increasingly looks to leverage the capabilities and skills which it already has across its operating divisions in attractive growth end-markets.

He added: "With a blue-chip customer base, and a proven track record of profitable growth and innovation, Contego step changes Filtrona's position in the pharmaceutical and healthcare markets for our packaging solutions activities. In addition, through leveraging our global commercial and operational resources, there is a real opportunity to geographically expand not only our combined packaging solutions, but also our other essential components to these end-markets."

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021