LONDON – Essentra plc, a leading global provider and manufacturer of essential components and solutions, announced the acquisition of Device Technologies LLC., a family-owned, US-based designer, manufacturer and distributor of specialty cable protection devices for an initial cash consideration of $6.7m.
Based in Massachusetts, Device Technologies has over 40 years of operational history and a strong track record of growth. Essentra has extensive knowledge of working with Device Technologies, through a successful distribution partnership spanning a number of years. The company designs, manufactures and distributes a broad range of specialty cable protection devices such as grommet edging, shielding gaskets and cable sleeving, which complement Essentra’s existing product expertise. With a well-established presence in the U.S. and exposure to Essentra’s target customer sectors, including energy transformation, transportation and general industrial markets, Device Technologies provides a strong adjacency to Essentra’s electronics, cable management and access hardware product ranges.
The acquisition is fully aligned with the Group’s disciplined approach to inorganic growth, both in terms of strategic alignment and in delivering financial returns. The acquisition represents a strategic in-sourcing of manufacturing capabilities, deepens product knowledge, and extends Essentra’s manufactured product offering. In line with the Group’s acquisition criteria, Device Technologies is expected to deliver attractive revenue synergies through cross-selling opportunities into EMEA and APAC where Device Technologies today has limited presence.
The total consideration comprises an initial cash payment of $6.7m and deferred contingent cash consideration1 of up to $1.2m, on a cash-free, debt-free basis. For the year ended 31 December 2024, Device Technologies generated revenues of approximately $6.5m. The initial consideration represents an acquisition multiple of 6.6x EBITDA for the last-twelve-months to June 2025, which is within Essentra’s targeted range. A return on invested capital2 of 15% is anticipated within three years, in keeping with the Group’s acquisition criteria.
Post-acquisition, Essentra’s balance sheet remains strong, with FY25 pro forma net debt position expected to be below 1.5x.
Scott Fawcett, CEO of Essentra, said: “I am delighted to announce the acquisition of Device Technologies, which strengthens Essentra’s product portfolio, expands our presence in the Americas, and unlocks further cross-selling opportunities across the Group. This transaction is a clear example of our inorganic growth strategy in action, leveraging our strong balance sheet to drive product expansion and market share gains. We are pleased to welcome another high-quality business, with a strong track record of growth into the Essentra Group, which will be accretive to both earnings and margins and support our strategy for long-term sustainable value creation.”