DC Advisory (DC) exclusively advised Essentra on the acquisition of the entire Abric Berhad’s security seals business for MYR 146 Mn.
Essentra Plc (Essentra) acquired the entire security seals business from Abric Berhad (Abric). DC was appointed as financial advisor to Essentra for the transaction.
DC’s execution expertise in Southeast Asia, particularly in Malaysia and Thailand, allowed us to foresee and anticipate the challenges of managing and completing M&A transactions in these markets.
As a result, DC was able to help our client in avoiding and/or resolving critical deal issues to swiftly close the transaction.
This transaction’s implied EV/EBITDA historical = 14/0x.
Essentra, listed on London Stock Exchange with a market capitalization of more than USD 3 Bn, is a FTSE 250 company and a leading international supplier of specialty plastic, fibre, foam & packaging components. Through its four principal operating divisions, Essentra focuses on the light manufacture and distribution of high volume, essential components, which serve customers in a wide variety of end-markets and geographies.
Abric, listed on Bursa Malaysia, is a global leading manufacturer and distributor of security sealing products and solutions for use in a diverse range of growing end-markets including healthcare, manufacturing, energy, retail, transportation and automotive. With low-cost manufacturing facilities in Malaysia and Thailand, Abric’s distribution network additionally covers 88 countries, with a strong focus on Asia Pacific, which accounts for 40% revenue.
By acquiring Abric’s security seals business, Essentra was able to acquire a product portfolio applicable to a broad range of attractive end-markets, derive synergies with its manufacturing and distribution channels, and significantly expands its presence in the fast-growing Asia Pacific region.