MILTON KEYNES, ENGLAND (Nov. 18, 1:50 p.m. ET) — Filtrona plc, a Milton Keynes-based supplier of specialty plastics and fiber products, has agreed to buy Richco Inc., a U.S. proprietary molder and extruder, for $110 million in cash.
The deal is subject to various regulatory provisions, but Filtrona said it is likely to go through by the beginning of 2012.
Colin Day, Filtrona's chief executive, said: “Not only does Richco expand our product range in plastic fastening and cable-management products, but also it gives us broader access to new, attractive growth end markets such as consumer electronics.”
Morton Grove, Ill.-based-based Richco “consolidates our position in existing geographies, as well as gives us access to certain new markets in which the protection and finishing products division is not currently present in both Europe and Asia,” he said.
For the year ended Dec. 31, 2010, Richco generated net sales of $71.4 million, with earnings before interest, taxation, depreciation and amortization of $11.9 million.
Richco's estimates for the current year indicate net sales in the region of $78 million and EBITDA of around $12.5 million.
The Richco acquisition is Filtrona's second in recent months. In August it announced plans to buy the assets and business of Reid Supply Co. of Muskegon, Mich., for $32 million. Reid distributes standard industrial components, including hardware, handles, clamps and fasteners.