Essentra has sold its filters and packaging businesses and appointed a new CEO.
In a statement released Oct. 3, the company said it had disposed Essentra Filter Holdings to Frank Acquisition Four, which is part of Centaury Management and owned by the investment office of the Markus family.
The deal, which is expected to complete Jan. 31, 2023, values the filters business at approximately £262.1 million ($301 million). For the year ended Dec. 31, 2021, filters delivered adjusted operating profit of £28.2 million.
Essentra’s packaging division was sold to the Mayr-Melnhof Group for £312 million. The sale to Mayr-Melnhof excluded Essentra’s Indian packaging business, which represents less than 1 percent of the group revenues and was purchased by BBM Bommidala.
Paul Forman will step down as CEO on Dec. 31, 2022. He will be succeeded by Scott Fawcett, currently the managing director of Essentra’s components division. Fawcett will join the board on Jan. 1, 2023.
The sale of the filter business follows a strategic review launched in October 2021.
“The sale of filters marks the final step of our journey to become a pure-play components business,” said Forman. “Essentra has a bright future as a leading global manufacturer and distributor of components with a clear strategy and significant opportunities to accelerate growth and expand market share.
“This transaction strengthens Essentra’s balance sheet and enables the group to return a meaningful portion of the proceeds to shareholders whilst maintaining the flexibility to invest in organic and inorganic growth.”