Business
Acquisition of Lambert and Trading Update
Acquisition of Lambert and Trading Update.
About this update from Mpac Group Plc
[{"type":"text","content":"\n \nRNS Number : 6484X Mpac Group PLC 01 May 2019 \n\n1 May 2019\n \nMpac Group plc\n(\"Mpac\" or the \"Company\")\nAcquisition of Lambert Automation Limited and Trading Update\n \nMpac Group plc (AIM: MPAC), the global packaging solutions group, is pleased to announce that it has acquired the entire issued share capital of Lambert Automation Limited (\"Lambert\") for an initial consideration of £15.0 million to be paid in cash (the \"Acquisition\"). Further deferred and earn-out consideration may become payable as set out below.\nLambert was founded in 1973 and is a provider of technology leading automation solutions to the medical and consumer healthcare markets. Lambert is based in Tadcaster, UK and employs approximately 160 staff. The audited financial statements of Lambert for the year to 31 December 2018 showed revenue of £17.9m and profit before tax of £1.3m including depreciation and amortisation of £0.8m and an interest credit of £1.1m, including waived preference share interest. Audited net assets at the same date were £7.1m, including net cash of £2.3m and goodwill of £4.9m.\nSales and earnings before interest, tax, depreciation and amortisation (\"EBITDA\") for the previous three financial years were as follows:\n\n\n\nFor the year ended 31 December\n\n\n2016\n\n\n2017\n\n\n2018\n\n\n\n\nSales\n\n\n£22.7m\n\n\n£21.2m\n\n\n£17.9m\n\n\n\n\nEBITDA\n\n\n£2.1m\n\n\n£2.2m\n\n\n£1.0m\n\n\n\n \nLambert recorded order intake of £24.5m in 2018, entering 2019 with a significantly higher order book than the previous year, providing confidence in its expected out-turn for the current financial year.\n \nBackground to the Acquisition\nThe Acquisition represents a compelling fit with Mpac's strategic intent of being a market leader in the provision of full-line packaging solutions for the pharmaceutical, healthcare and food and beverage sectors. Lambert typically works upstream in its customers' product and production lifecycle which will enable Mpac to offer a more comprehensive and broader range of automation and packaging solutions to its customers. Mpac will enter the medical and healthcare product assembly and packaging market fulfilling the expected increase in demand for wellness products. Mpac will support Lambert's current strategic plan, exploring the growth opportunities opened by t...