Filtrona, the supplier of speciality plastic, fibre and foam products, has bought Lymtech Scientific, a manufacturer and distributor of porous speciality wiping materials used within the clean environments.
The purchase was made for a cash consideration of $45.3m, on a debt-free basis, funded from the company's existing facilities.
The acquisition, which will be immediately earnings-enhancing, was made to both add complementary technology in a growth segment to Filtrona's Porous Technologies division, but also to enhance the commercial capability of the division through the addition of a distribution selling channel.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
For the year ended September 30th 2011, Lymtech Scientific generated revenue of $28.7m and earnings before interest, depreciation and amortisation (EBITDA) of $5.7m. For the year ending 30 September 2012, Lymtech Scientific's current estimates indicate revenue in the region of $30m and EBITDA of around $6.0m.
"In addition, through leveraging the global commercial and operational resources of our Porous Technologies division, there is a real opportunity to expand the Lymtech business geographically into the sizeable Asian and European clean-room wipes markets," claimed Colin Day, Chief Executive of Filtrona.
Equity release rates drop – is it worth unlocking cash from your home?
News Lifetime mortgage rates are falling from their record highs - is equity release worth another look?
By Marc Shoffman Published
Hargreaves Lansdown launches fixed-term cash ISA product
savings/hargreaves-lansdown-fixed-cash-isa-launch Investment platform Hargreaves Lansdown is to offer fixed term cash ISAs via its Active Savings platform paying 4.8%, tax free - but is it any good?
By Kalpana Fitzpatrick Published