Business
Acquisition
Acquisition.
About this update from Synergia Energy Ltd
[{"type":"text","content":"\n \nRNS Number : 3903E Plastics Capital PLC 18 July 2016 \n\n \n \nPlastics Capital plc\n(the \"Company\" or the \"Group\")\n \nAcquisition of Synpac Limited\nComplementary packaging acquisition for the food processing industry\n \nPlastics 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.\n \nAcquisition Highlights\n· Synpac is a specialist manufacturer of vacuum bags and pouches for the food processing industry\n· Complementary products and customers with the Company's existing film packaging business\n· Cross-selling opportunities and cost synergies for the enlarged packaging business\n· Normalised sustainable EBITDA estimated by Directors to be £0.6m\n· £2.79 million cash paid on completion and a further £0.31 million is payable after 12 months\n· Total cash consideration will be funded through increased debt facilities provided by Barclays Bank, as announced 4 July 2016\n \nAbout Synpac\nEstablished in 1984 and based in Hessle, Yorkshire, Synpac is a specialist manufacturer of high barrier, flexible packaging solutions, especially vacuum bags and pouches, for the food processing industry. \n \nThe Directors believe that Synpac has a loyal customer base with high levels of recurring business due to excellent service and quality standards that have been maintained over many years. As such, they believe it fits very well with the Company's Films Division comprising Flexipol Packaging Limited (\"Flexipol\") and Palagan Limited (\"Palagan\"). Flexipol, in particular, is a manufacturer of high barrier flexible packaging solutions for the food industry.\n \nIn the financial year ended 31 May 2015, Synpac generated revenues of £4.4 million and statutory profit before taxation of £0.8 million. The Directors estimate that the normalised sustainable EBITDA of Synpac is circa £0.6 million, after making suitab...