Plastic, fiber, foam and packaging specialist Essentra plc is selling its Porous Technologies business to U.S.-based Filtration Group Co.
The transaction valued Porous Technologies at 220 million pounds ($290 million). Filtration Group is an affiliate of Madison Industries and based in Austin, Texas.
The deal is expected to close by the first quarter of 2017.
With a global footprint of 80 facilities in more than 20 countries, Filtration Group provides filtration solutions across life sciences, process technologies, fluid and environmental air applications.
In 2015, the Porous Technologies business generated external sales of 91.6 million pounds ($120.9 million) and operating profit of 19 million pounds ($25 million).
For the unaudited 12 months that ended June 30, the company posted external sales of 93.7 million pounds ($123.7 million)and operating profit of 17.6 million pounds ($23.2 million).
“The divestment of Essentra's Porous Technologies business is consistent with our drive for 2020 strategic objective of active portfolio management, with the aim of creating sustainable, long-term shareholder value," said CEO Colin Day in a news release.
Porous Technologies has good technologies, Day added, but was no longer core to Essentra. It will be a better fit for Filtration Group, which has products in multiple industries, including life sciences, industrial and environmental protection.
“As such, the transaction not only represents compelling value for Essentra shareholders, but also provides our Porous Technologies business with a strong platform for future successful development under the strategic ownership of Filtration Group,” Day said.