Filtrona plc, a Milton Keynes supplier of specialty plastics and fiber products, has agreed to buy Richco Inc., a proprietary molder and extruder, for $110 million in cash.
Subject to regulatory provisions, the deal is likely to go through by the beginning of 2012, Filtrona said.
Colin Day, Filtrona's chief executive, said the deal will bring his company new fastening and cable-management products and new end markets such as consumer electronics.
Morton Grove, Ill.-based-based Richco “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.