Plastics Capital (AIM: PLA), the niche plastics products group, announces the acquisition of Synpac Limited (“Synpac”) for a maximum cash consideration of £3.1 million, on a cash and debt-free basis, to be satisfied from existing debt facilities (the “Acquisition”). The Acquisition is expected to be earnings enhancing in the first full financial year following completion ¹.

Acquisition Highlights

•    Synpac is a specialist manufacturer of vacuum bags and pouches for the food processing industry
•    Complementary products and customers with the Company’s existing film packaging business
•    Cross-selling opportunities and cost synergies for the enlarged packaging business
•    Normalised sustainable EBITDA estimated by Directors to be £0.6m
•    £2.79 million cash paid on completion and a further £0.31 million is payable after 12 months
•    Total cash consideration will be funded through increased debt facilities provided by Barclays Bank, as announced 4 July 2016

Source : plasticscapital.com