Plastics Capital bags Synpac for £3.1m

18th Jul 2016 11:20

(ShareCast News) - 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.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 £0.6mIn the financial year ended 31 May 2015, Synpac generated revenues of £4.4m and £0.8m in pre-tax profits.