Contego Healthcare sold to Filtrona

- Transaction values Contego Healthcare at approximately £160 million on a cash free, debt free basis

 

- Moorgate Capital advised on the sale, as well as that of sister company Contego Cartons to Graphic Packaging

 

Filtrona, an international supplier of speciality plastic, fibre and foam products, has acquired Contego Healthcare for £160 million.

 

FIL International, a subsidiary of Filtrona, has acquired 100 percent of the share capital of Contego Healthcare from Maximus Holding II and Storey Evans & Company.

 

Established in 1991, Contego is a pan-European specialist business providing a range of print, packaging and support services to the pharmaceutical and healthcare markets from operational sites across Europe. With a product range including folding cartons, leaflets, self-adhesive labels and printed foils used in blister packs, Contego is able to deliver a to meet individual customer requirements.

 

Contego's product portfolio is complementary to Filtrona's existing packaging capabilities in the pharmaceutical and healthcare markets of labels, tear tape and authentication technologies.

 

As such, the acquisition will not only enhance the range and innovation opportunities offered to existing Contego and Filtrona customers, but also provide access for both companies to potential new customers through leveraging their combined skills. In addition, through adding critical mass to the company in these end-use markets and significant additional scale in western Europe, the acquisition of Contego provides opportunity for further development in both Porous Technologies and in speciality tapes through an expanded and more focused category-based commercial approach.

 

The acquisition of Contego, which will be reported under the Filtrona's coated and security products division, is consistent with its Vision 2015 strategy of complementing balanced, profitable organic growth with value-adding acquisitions.

 

For the year ended December 31, 2012, on a consolidated basis, Contego Healthcare generated revenue of £102.7 million and earnings before interest earnings before interest, taxes, depreciation and amortization of £17.9 million.

 

The transaction values Contego at approximately £160 million on a cash free, debt free basis.

 

The consideration, which is subject to customary adjustments for net debt and working capital and which will be payable on completion of the transaction, will be funded in part by a placing, by way of an accelerated book-build, of up to 21,142,613 million new ordinary shares, representing 9.99 percent of Filtrona's current issued share capital. The balance will be funded from existing debt facilities.

 

Completion is conditional upon, among other things, clearance from the German competition authorities, which is anticipated to be satisfied by mid-April 2013.

 

Moorgate Capital advised on the sale, as well as that of sister company Contego Cartons to Graphic Packaging.

 

Moorgate Capital’s Nicholas Mockett details the current M&A situation in the packaging market in the next issue of Package Print Worldwide.

 

Read more about M&A activity here

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