Filtration Group Corp to Acquire Porous Technologies of Essentra PLC

United States: Filtration Group Corporation, a United States based manufacturer and distributor of filtration products, has announced its plans to acquire porous technologies business of Essentra PLC, a United Kingdom based supplier of specialist plastic, fibre and foam products. The acquisition of porous technologies business of Essentra PLC is valued around USD290 million and deal is expected to close by first quarter of 2017. In 2015, porous technologies business generated USD120.9 million and operating profit from the business was approximately USD25 million. The divestment of porous technologies business by Essentra PLC is a part of its strategic objective 2020 as the company is focusing on active product portfolio management and aims to attain long term sustainable growth. Additionally, porous technologies is not consistent with other products present in portfolio of Essentra PLC and the acquisition of porous technologies division would benefit the Filtration Group to supply this technology across the globe.

TechSci Research depicts that the buyout of porous technologies of Essentra PLC is a strategic decision by Filtration Group as this acquisition would widen the product portfolio of the latter company and would result in increased customer reach and penetration of the filtration products of Filtration Group across the globe.

According to the recently published report by TechSci Research, “United States Membrane Market By Type (Microfiltration, Reverse Osmosis, Ultrafiltration and Others), By Application (Water and Wastewater Treatment, Haemodialysis, Pharmaceutical, Chemical, etc.), Competition Forecast and Opportunities, 2011 - 2021”, the country’s membrane market is projected to grow at a CAGR of 8% during 2016 - 2021. Increasing government investments for setting up water treatment plants in the US is also expected to drive demand for membranes by water & waste water treatment industry over the next five years. With water deficient conditions prevalent across various parts of the country, implementation of water conservation and water recycling strategies to reuse the water has become a priority, which is augmenting demand for membranes in the country. Over the next five years, membrane use in medical applications such as hemodialysis and pharmaceutical industry in the US is also expected to grow at a rapid pace.