Essentra (LSE:ESNT, Financial) (U.K.) manufactures components, filters and packaging products. After undergoing multiple restructuring initiatives in the past five years, the company announced in the fourth quarter that it intends to separate its businesses and move to a pure-play components structure. We consider Essentra’s components segment highly valuable and believe it benefits from attractive growth trends and a favorable margin profile. We support management’s decision to unlock shareholder value through the separation and we believe the company is undervalued relative to the sum of its parts.
From David Herro (Trades, Portfolio)'s Oakmark Intl Small Cap (Trades, Portfolio) Fund's fourth-quarter 2021 letter.
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