The company is expected to complete the reviews of its Packaging and Filters businesses in the second quarter of next year
UK-based packaging and labelling firm Essentra has started a strategic review of its Packaging business to become a pure play industrial components business.
Its Packaging unit is engaged in supplying a complete range of secondary packaging for the companies in the health and personal care sectors.
The business wing has 23 facilities across three geographic regions and produces cartons, leaflets, self-adhesive labels and printed foils.
In the last few years, Essentra has simplified its portfolio into three strategic business units, focussing on Packaging, Filters, and Components.
The current review of the Packaging unit follows the company’s similar evaluation of strategic options for its Filters unit, announced last month.
Essentra said that the strategic review of its Packaging and Filters businesses is expected to complete in the second quarter of 2022.
According to the company, the Packaging division has been impacted by Covid-induced demand, increase in material costs and labour shortages.
The business is expected to benefit from the recovery in global healthcare systems and increased demand for prescriptions and elective surgeries.
The Packaging division reported a decline of 6.1% in revenue on a like-for-like basis in the third of 2021.
In a separate development, Essentra announced that its chief financial officer Lily Liu will resign from her role at the end of June 2022.
Essentra chairman Paul Lester said: “I am pleased with the third-quarter performance overall. Components has delivered strong revenue growth, Filters has good momentum and Packaging continues to manage the difficult conditions within its market.
“We continue to focus on organic growth and efficiency initiatives to drive profitability, as well as acquisition opportunities.”
“On behalf of the Board, I would like to thank Lily for her contribution to Essentra over the past three years. She has played an important role in helping the team deliver on the group’s strategy and growth objectives.”
In September last year, Essentra agreed to acquire US-based 3C!Packaging, a provider of custom folding cartons, printed literature, foil and flexible packaging for around $65m.