Epwin Group acquires materials re-processor Poly-pure

Epwin said on Monday that it will acquire the company on a cash-free debt-free basis, with the consideration representing a multiple of 6x estimated 2022 adjusted underlying earnings.

Further deferred consideration may become payable, subject to an earnout mechanism, in equal installments based upon the adjusted EBITDA of Poly-Pure over the next three full calendar years.

Additional payments will be at a further £15.0m in cash which, if achieved, will equate to a 31 December 2025 adjusted underlying earnings multiple after synergies of 3x.

The acquisition, which will be funded from existing facilities, was predicted to be margin accretive for Epwin at the adjusted EBITDA level and was also expected to be immediately earnings enhancing.

As of 0805 BST, Epwin shares were up 0.55% at 73.40p.

Reporting by Iain Gilbert at Sharecast.com