19 April 2007
Filtrona plc today announces it has signed an agreement for the acquisition of the assets and business of Chicago, Illinois based Duraco Inc.
Filtrona plc (“Filtrona”) today announces it has signed an agreement for the acquisition of the assets and business of Chicago, Illinois based Duraco Inc. (“Duraco”) for a cash consideration of $61m, payable on completion. Completion of the transaction is conditional upon clearance from the US competition authorities which is expected within the next 30 days.
For the year ended 31 December 2006, Duraco profit before tax was $6.5m and gross assets were $10.7m. It is anticipated that the transaction will be immediately earnings accretive for Filtrona.
Duraco is a market leading manufacturer and supplier of self-adhesive foam products for protection and finishing applications in a broad array of served markets including point of purchase products and white goods.
Commenting on the acquisition, Chief Executive, Mark Harper said: “The acquisition of Duraco fits exactly with Filtrona’s growth strategy of developing the Company through a combination of organic development and acquisitions. Duraco is an important addition to the Protection and Finishing Products activity which has already grown to become Filtrona’s largest business. I would like to take this opportunity to welcome the employees of Duraco to the Filtrona team.”