UK-based contract manufacturer Essentra has completed the sale of its packaging business to Austrian carton packaging supplier Mayr-Melnhof Group.

The £312m deal includes Essentra’s ESNT Packaging & Securing Solutions business and Essentra Packaging US, as well as their respective subsidiary companies.

The transaction closed on 1 October following approvals from both regulatory agencies and shareholders.

Its completion comes after the two parties signed an agreement for the sale of the business in June this year.

Essentra said that the deal excludes its packaging business in India, which has instead been sold to BBM Bommidala.

The company’s Indian business contributes less than 1% of its total group revenues.

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Essentra’s packaging business consists of 23 facilities across three geographic regions, supplying a full range of secondary packaging solutions for the health and personal care sectors.

In addition to its packaging business, Essentra has sold its filters division, Essentra Filter Holdings, to Frank Acquisition Four.

The sale is in line with the company’s previously announced strategic review.

The deal values Essentra’s filters business at around £262.1m, which includes the full consolidation of certain joint ventures.

Essentra chief executive Paul Forman said: “The strategic review of Filters was launched in October (last year) and has built on the significant progress the division has made since 2017 when announcing its strategy for future growth.

“The sale of Filters marks the final step of our journey to become a pure play components business.

“Essentra has a bright future as a leading global manufacturer and distributor of components with a clear strategy and significant opportunities to accelerate growth and expand market share.

“This transaction strengthens Essentra’s balance sheet and enables the Group to return a meaningful portion of the proceeds to shareholders while maintaining the flexibility to invest in organic and inorganic growth.”