Filtrona Plc (FLTR), a U.K. maker of plastic packaging and cigarette filters, said it was considering other acquisitions after agreeing to buy U.S. industrial parts distributor Reid Supply Co. for as much as $32 million in cash.
The purchase will add products to Filtrona’s protection and finishing division and increase the number of its U.S. customers, Chief Executive Officer Colin Day said in a telephone interview today.
Filtrona may complete the deal within three weeks and is considering other acquisitions at least as big as the Muskegon, Michigan-based company, in faster-growing markets such as China, India and Indonesia, he said.
“There are a number of deals out there -- that’s a key element to the growth” of the company, Day said. “The Reid size would be the baseline. That would be the sort of bottom end for me.”
First-half profit fell 5.5 percent to 25.6 million pounds ($42 million), as the preceding year’s results had included a 5 million-pound profit from discontinued operations, Milton Keynes, England-based Filtrona said in a statement today. Revenue for the six months ended June 30 climbed 8 percent to 268.6 million pounds.
Filtrona shares climbed 7.1 percent to 337.30 pence at the 4:30 p.m. close in London. The stock has gained 39 percent this year, giving the company a market value of 702.3 million pounds.
To contact the reporter on this story: Charles Mead in London at firstname.lastname@example.org
To contact the editor responsible for this story: Colin Keatinge at email@example.com