Plastics Capital has acquired Flexipol, which manufactures a range of flexible packaging products (Image: Flexipol)
UK-based specialist plastic products manufacturer, Plastics Capital, has announced it has conditionally agreed to acquire Lancashire-based Flexipol Packaging Limited for a maximum consideration of £10.64 million.
Plastics Capital, which has mainly grown through acquisitions since it was established in 2002, says that Flexipol, which manufacturers a range of flexible packaging products including pallet covers, vacuum bags and tray liners, offers “complementary products and customers” in line with the company’s existing packaging business.
The maximum cash consideration is based on £9.82 million payable in cash on completion and £0.82 million of earn-out payments which may be payable in cash based on certain EBITDA targets. Plastics Capital said it expects the acquisition to be earnings enhancing in the first full financial year.
Plastics Capital is a specialist plastics products manufacturer focused on proprietary products for niche markets. The Group has four factories in the UK, one in Thailand and sales offices in the USA, Japan, India and China.
Currently approximately 60 percent of sales are exported to over 80 countries worldwide and production is concentrated in the UK where the Group says “significant engineering know-how and automation” underpins the its competitiveness.
The Group has approximately 300 employees within the four key operating subsidiaries: BNL in Knaresborough (North Yorkshire), C&T Matrix in Wellingborough (Northamptonshire), Palagan in Dunstable (Bedfordshire) and Bell Plastics in Poole (Dorset).
“Flexipol is very clearly a business that meets our acquisition criteria - specialty products, high recurring revenues with loyal customers, limited competition and healthy financial performance,” Faisal Rahmatallah, Chairman and CEO of Plastics Capital, commented.
“It is complementary to Palagan and this should enable us to extract significant synergies in due course through cross selling, operational efficiencies and raw material cost savings.”