Filtrona, a UK-based international, market leading speciality plastic and fibre products supplier, has agreed to sell-off its subsidiary, Filtrona Extrusion, Inc. to Extrusion LLC, a subsidiary of Saw Mill Capital Partners, L.P., for US$115 mln on a cash and debt free basis. Filtrona Extrusion is one of the largest manufacturers of proprietary and customised thermoplastic profile, tube and sheet extrusions in North America. It operates as part of Filtrona's Plastic Profile and Sheet division within the Company's Plastic Technologies segment. The business operates 126 extruders, 51 co-extruders and six sheet lines in over 750,000 square feet of production space in seven facilities within the United States and Mexico.
The consideration comprises (i) a cash payment of US$77.5 mln to be made at completion, (ii) a 5.25 year loan note for a total of US$7.5 mln to be delivered at completion, and (iii) an earn out payment of up to US$30.0 mln payable after two years contingent on Filtrona Extrusion's cumulative EBITDA in 2009 and 2010. Filtrona believes the deal is consistent with Filtrona's strategic objectives and it releases management resources and capital to focus on the Group's higher margin, higher growth potential businesses. Filtrona is a well invested global business comprising of 36 manufacturing facilities, 42 distribution units and sales offices, and four research facilities spread across 24 countries in the Americas, Europe and Asia. Filtrona employs some 4,700 people across the world.
05-Mar-09 
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