18th November 2011 – 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.
Commenting on the acquisition, Chief Executive, Colin Day, said: “The acquisition of Richco is consistent with the Company’s Vision 2015 strategy of complementing balanced organic growth with value-adding acquisitions. Not only does Richco expand our product range in plastic fastening and cable management products, but also it gives us broader access to new, attractive growth end markets such as consumer electronics. In addition, Richco consolidates our position in existing geographies, as well as gives us access to certain new markets in which the PFP division is not currently present in both Europe and Asia.”
About Filtrona
Filtrona plc is a leading international supplier of speciality plastic and fibre products. Further information can be found on the website www.filtrona.com.
About Richco
Richco was founded in 1954, and is a privately-owned company based in Chicago, Illinois. It has global operations, with four manufacturing sites and nine other distribution sites in the U.S., Europe and Asia. Richco offers both custom-designed parts and 15,000 standard parts across 12 product categories, including cable management, circuit board hardware and cable ties / accessories.