March 19 (Reuters) - British plastic and fibre products supplier Filtrona Plc said it would buy Contego Heathcare Ltd for 160 million pounds ($241.7 million) in a deal that is expected to add to earnings immediately.
The acquisition will be funded in part through proceeds from a share placement of about 10 percent of Filtrona’s share capital that is expected to raise about 133 million pounds, and from existing debt facilities.
Contego, which makes cartons, leaflets, self-adhesive labels, and printed foils for blister packs for the pharmaceutical and healthcare industries, reported core earnings of 17.9 million pounds on revenue of 102.7 million pounds in the year ended Dec. 31.
Contego’s product portfolio is complementary to Filtrona’s existing packaging business that supplies the pharmaceutical and healthcare markets with items like labels and tear tape, Filtrona said in a statement.
Shares in Filtrona were down 2 percent at 649.7 pence at 0804 GMT on Tuesday on the London Stock Exchnage.