Richco has been sold to Filtrona

Lincoln International has announced the completion of the sale of 100% of the share capital of Richco, Inc. (“Richco” or the “Company”) to Filtrona plc (“Filtrona,” LSE: FLTR) for cash consideration of $110 million. Richco is a leading global designer, manufacturer and distributor of the most comprehensive range of highly innovative and engineered plastic solutions for fastening and routing applications. The Company serves diverse and growing end markets such as consumer electronics, telecom/datacom and white goods/appliances. Lincoln International, a leading mid-market investment bank, acted as the exclusive financial advisor to the Company.

Richco, headquartered in Morton Grove, IL, is a global business, with over 70% of its sales generated outside of North America and with management, manufacturing, engineering and sales and distribution in North America, Europe and Asia. For the year ending December 31, 2011, the Company is forecasting sales and earnings before interest, taxes, depreciation and amortization (“EBITDA”) of approximately $78.0 million and $12.5 million, respectively.

Filtrona is a leading international supplier of specialty plastic and fibre products. Through its Protection & Finishing Products division, it is a global market leading provider of product protection and finishing products, manufacturing and distributing plastic injection molded, dip molded, adhesive-coated foam and metal products for industries such as hydraulics, pneumatics, oil and gas, electrical controls, point of purchase and tubular metal products.

Rick Streicher, Richco’s Chief Executive Officer, stated that “Lincoln did an outstanding job in understanding Richco’s unique business model and in creating a targeted marketing approach that generated significant interest from strategic acquirers worldwide. The result was a very competitive auction process that provided attractive alternatives and an excellent outcome for Richco and its shareholders.”

Commenting on the acquisition, Filtrona’s Chief Executive, Colin Day, said “Not only does Richco expand our product range in plastic fastening and cable management products, but also it gives us broader access to new, attractive growth end markets such as consumer electronics. In addition, Richco consolidates our position in existing geographies, as well as gives us access to certain new markets in which the PFP division is not currently present in both Europe and Asia.”

Share: