Devoto & Co. Negotiates Acquisition of Richco, Inc. For US$110 Million
Filtrona plc today announces it has signed an agreement for the acquisition of 100% of the share capital of Richco, Inc. (“Richco”) for a cash consideration of US$110m. The cash consideration, which is subject to customary adjustments and funded from the Company’s existing facilities, is payable on completion of the transaction to various Richardson family trusts. Completion is conditional upon certain administrative provisions, primarily clearance from the German competition authorities, which are anticipated to be satisfied by the beginning of 2012.
Richco is a leading international designer, manufacturer and distributor of engineered plastic and elastomeric solutions for fastening and cable management applications in diverse and growing end markets. These markets include consumer electronics, industrial, telecom / datacom and white goods / appliances. Based in the U.S., Richco generates over 70% of its revenues outside North America, with management, manufacturing, engineering and sales and marketing in North America, Europe and Asia.
For the year ended 31 December 2010, Richco generated net sales of US$71.4m, earnings before interest, taxation, depreciation and amortisation (“EBITDA”) of US$11.9m and earnings before interest and taxation (“EBIT”) of US$8.8m: total assets as at this date were US$37.2m. For the year ending 31 December 2011, Richco’s current estimates indicate net sales in the region of US$78.0m, EBITDA of around US$12.5m and EBIT of c.US$9.5m. The transaction will be immediately earnings enhancing to Filtrona, and will be reported under the Company’s Protection & Finishing Products (“PFP”) division.