REG - Essentra plc - Acquisition of Device Technologies

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RNS Number : 8392L  Essentra plc  17 December 2025

ESSENTRA PLC

("Essentra", the "Group" or the "Company")

ACQUISITION OF DEVICE TECHNOLOGIES LLC

Essentra plc, a leading global provider and manufacturer of essential
components and solutions, is pleased to announce the acquisition of Device
Technologies LLC. ("Device Technologies"), a family-owned, US-based designer,
manufacturer and distributor of specialty cable protection devices for an
initial cash consideration of $6.7m (the "acquisition").

Based in Massachusetts, Device Technologies has over 40 years of operational
history and a strong track record of growth. Essentra has extensive knowledge
of working with Device Technologies, through a successful distribution
partnership spanning a number of years. The company designs, manufactures and
distributes a broad range of specialty cable protection devices such as
grommet edging, shielding gaskets and cable sleeving, which complement
Essentra's existing product expertise. With a well-established presence in the
U.S. and exposure to Essentra's target customer sectors, including energy
transformation, transportation and general industrial markets, Device
Technologies provides a strong adjacency to Essentra's electronics, cable
management and access hardware product ranges.

The acquisition is fully aligned with the Group's disciplined approach to
inorganic growth, both in terms of strategic alignment and in delivering
financial returns. The acquisition represents a strategic in-sourcing of
manufacturing capabilities, deepens product knowledge, and extends Essentra's
manufactured product offering. In line with the Group's acquisition criteria,
Device Technologies is expected to deliver attractive revenue synergies
through cross-selling opportunities into EMEA and APAC where Device
Technologies today has limited presence.

The total consideration comprises an initial cash payment of $6.7m and
deferred contingent cash consideration(1) of up to $1.2m, on a cash-free,
debt-free basis. For the year ended 31 December 2024, Device Technologies
generated revenues of approximately $6.5m. The initial consideration
represents an acquisition multiple of 6.6x EBITDA for the last-twelve-months
to June 2025, which is within Essentra's targeted range. A return on invested
capital(2) of 15% is anticipated within three years, in keeping with the
Group's acquisition criteria.

Post-acquisition, Essentra's balance sheet remains strong, with FY25 pro forma
net debt position expected to be below 1.5x.

 

Scott Fawcett, CEO of Essentra, said:

"I am delighted to announce the acquisition of Device Technologies, which
strengthens Essentra's product portfolio, expands our presence in the
Americas, and unlocks further cross-selling opportunities across the Group.
This transaction is a clear example of our inorganic growth strategy in
action, leveraging our strong balance sheet to drive product expansion and
market share gains. We are pleased to welcome another high-quality business,
with a strong track record of growth into the Essentra Group, which will be
accretive to both earnings and margins and support our strategy for long-term
sustainable value creation."

 

 

Enquiries

 Essentra plc                                 FTI Consulting

 Rowan Baker, Chief Financial Officer         Richard Mountain

 Claire Goodman, Head of Investor Relations   Ariadna Peretz

 Tel: +44 (0)1908 359100                      FTI_essentra@fticonsulting.com (mailto:FTI_essentra@fticonsulting.com)

                                              Tel: +44 (0)20 3727 1340

Notes

1.   Deferred contingent consideration is subject to certain performance
conditions over a one-year period.

2.   Return on Invested Capital is calculated as adjusted operating profit
expressed as a percentage of invested capital. Invested capital is defined as
initial consideration and deferred contingent consideration, plus capex
investment, and associated acquisition transaction fees.

( )

More information on Device Technologies Inc. can be found on its website at:
www.devicetech.com (http://www.devicetech.com)

( )

About Essentra plc

Essentra plc is a leading global provider of essential components and
solutions, focusing on the manufacture and distribution of plastic injection
moulded, vinyl dip moulded and metal items.

Headquartered in the United Kingdom, Essentra's global network extends to 28
countries worldwide and includes c.3,000 employees, 14 manufacturing
facilities, 26 distribution centres and 37 sales & service centres serving
c.64,000 customers with a rapid supply of low cost but essential products for
a variety of applications in industries such as equipment manufacturing,
automotive, fabrication, electronics, medical and renewable energy. For
further information, please visit www.essentraplc.com
(http://www.essentraplc.com)

LEI: 5493007MOZNA03BVNE96

Cautionary forward-looking statement

These results contain forward-looking statements based on current expectations
and assumptions. Various known and unknown risks, uncertainties and other
factors may cause actual results to differ from future results or developments
expressed or implied from the forward-looking statements. Each forward-looking
statement speaks only as of the date of this document. The Company accepts no
obligation to revise or update these forward-looking statements publicly or
adjust them to future events or developments, whether as a result of new
information, future events or otherwise, except to the extent legally
required.

 

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