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Essentra - New acquisition for just 5.3x EBITDA post synergies

November 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ESNT
  • Price:
  • 167p
Essentra has announced the acquisition of BMP TAPPI, an Italian manufacturer and distributor of caps & plugs for an initial €35.5m (plus up to €3.5m deferred). This family-owned firm is based in Milan and is well-known to Essentra, having been a trading partner for over 20 years; it also has a 60 year history, track record of consistent growth, enjoys strong margins and is well invested with attractive margins. Management guide to BMP TAPPI delivering sales of €13.4m for EBITDA of €4.2m in the current year, equating to an initial EBITDA multiple of 8x, but interestingly guidance post synergies is for EBITDA multiple of an attractive 5.3x. It will be eps enhancing in its first full year with funding from existing debt facilitie ...

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