LONDON: Mpac Group plc, a global leader in high-speed packaging and automation solutions, has entered into an agreement with Jim Laverdiere to acquire the entire issued share capital of Boston Conveyor & Automation Inc. (BCA), a US-based supplier of robotic automation and conveyor solutions to the food, life sciences and general industry sectors.
The aggregate consideration for the Acquisition is $17 million, before customary adjustments for cash and working capital, consisting of $11 million in cash and $6 million which is being satisfied by the issue of 1,059,349 new ordinary shares in the capital of Mpac at an issue price of 430.0 pence, being the closing mid-market price on 17 September 2024.
Boston Conveyor & Automation was founded in 2017 and is a provider of robotic automation and conveyer solutions, principally to the food but also the life sciences and general industrial sectors. BCA is based in Newburyport, Massachusetts and employs 50 staff.
BCA offers a full suite of process-oriented primary and secondary packaging, pick and place lines and conveyor systems, specialising in customised, turnkey systems, including those with hygienic design requirements.
The range of solutions offered by BCA gives further breadth and depth to Mpac’s capabilities, with a particular focus on handling and packaging of products. BCA and Mpac have several clients in common and have historically featured together on customer projects underlying the strategic value of the Acquisition.
Jim Laverdiere, the former sole shareholder of BCA, will remain with the business as President to continue the next phase of its growth strategy and wider development of Mpac. The acquisition of BCA is expected to deliver sales and service synergies through the leverage of the enlarged Group’s customer base and the pull-through of Mpac’s existing technologies.
The acquisition provides a significant growth opportunity into EMEA through Mpac’s sales presence, a geography previously unaddressed by BCA. In addition, Mpac will benefit from BCA’s position of strength in standard and complex conveyor solutions, and food and material handling automation.
BCA’s unaudited results on a trailing 12 months to 31 May 2024 showed sales of $14.0 million and adjusted earnings before interest, tax and depreciation of $2.8 million. The unaudited financial statements of BCA for the year to 31 December 2023 showed revenue of $13.4 million and profit before tax of $1.0 million. Unaudited net assets at 31 December 2023 were $1.4 million including net cash of $1.0 million.
Adam Holland, Chief Executive of Mpac, commented: “I’m delighted to announce the acquisition of BCA, another key milestone in Mpac’s strategic journey, bringing capability upstream of our Langen and Switchback businesses into the Group’s customer offering.
BCA is a high-quality business with exceptionally talented employees, and further expands Mpac’s physical footprint in North America. I am excited by the opportunity to provide the customers of both businesses with an expanded technology capability. I am equally excited to welcome Jim Laverdiere and the wider BCA team to Mpac.”