Plastics Capital bags Synpac for £3.1m
AIM-listed niche group Plastics Capital said it had bought Synpac, a specialist manufacturer of vacuum bags and pouches for the food processing industry, for £3.1m, on a cash and debt-free basis.
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The company said the purchase would be satisfied through existing debt facilities and is expected to be earnings enhancing in the first full financial year after completion. It added that £2.79m in cash paid is payable on completion and a further £0.31m after 12 months.
Synpac would complement Plastics' existing film packaging business and provide cross-selling opportunities and cost synergies for the enlarged packaging business, the company said.
Plastics said normalised sustainable earnings before interest, tax, depreciation and amortisation was estimated by to be £0.6m
In the financial year ended 31 May 2015, Synpac generated revenues of £4.4m and £0.8m in pre-tax profits.