Essentra is considering future of its packaging business

Essentra has kicked off a strategic review of its packaging division – which includes its authentication technologies unit – as it continues its plan to become a pure-play components business.

The UK company – which manufactures plastic, fibre and metal parts for industrial applications – is already carrying out a review of its filtration business as part of the strategy. Both reviews are expected to be completed in the second quarter of 2022, and may or may not result in the sale or spin-off of the divisions.

The packaging division makes cartons, leaflets, self-adhesive labels and printed foils used for blister packs – mainly serving the pharma, beauty, industrial and consumer good sectors – as well as incorporating a photo identification cards business and brand protection activities like tamper-evidence, tear tapes and anti-counterfeit and authentication technologies.

It is Essentra's biggest business unit with a turnover of £187m ($250m) in the first six months of fiscal 2021/22 out of total group revenues of £475m. The components business made £148m and is the most profitable category, while filters brought in around £140m.

Essentra is also looking for a new chief financial officer, as current CFO Lily Liu is due to take up a new role at plastics specialist Synthomer plc.

"The board's intention is to appoint a CFO for the Essentra Components business in due course, underlining the future strategic direction of the company," said Essentra in a statement.