Filtrona plc Acquisition of Reid Supply
Filtrona plc ('Filtrona') announces that it has signed an agreement for the acquisition of the assets and business of Reid Supply Company ("Reid Supply") for a cash consideration of up to US Dollar 32 million, subject to customary adjustments. US Dollar 30 million is payable on completion, with the balance deferred and subject to the achievement of performance targets for the period ending 31 December 2012. Completion is subject to certain administrative conditions and is anticipated within three weeks.
Reid Supply, based in Muskegon, Michigan, is a leading distributor of standard industrial components, including hardware, handles, clamps and fasteners, to a vast range of markets and customers via a catalogue. The business is highly complementary to Filtrona's Protection & Finishing Products ("PFP") division.
Commenting on the acquisition, Colin Day, Chief Executive of Filtrona, said:
"The acquisition of Reid Supply is an excellent addition to the PFP division. The business has a long standing reputation for high service levels with a broad and complementary range. These products will significantly enhance PFP's offering both in the US and Europe, with Reid Supply's customers also gaining access to PFP's US distribution network and product range.
This acquisition demonstrates Filtrona's commitment to identifying quality acquisitions where it can leverage its commercial model and global infrastructure to achieve faster growth."