LONDON: Mpac Group plc (AIM: MPAC) announced that its indirectly wholly owned subsidiary Mpac Bidco B.V., has entered into an acquisition agreement with the sellers to conditionally acquire the entire issued share capital of Elstar International B.V. a private limited liability company incorporated under the laws of the Netherlands that operates under the name CSi Palletising.

The consideration payable to the Sellers for CSi Palletising is an enterprise value of €56 million.

CSi Palletising has a trading history of 60 years and has a high-quality established blue-chip customer base across the FMCG sector. It is headquartered in the Netherlands and supported by well invested manufacturing facilities in Romania.

Mpac Board believes that the acquisition is transformational and highly complementary to the existing Mpac business. It also believes there is clear strategic rationale for the acquisition, extending Mpac’s product line offering and customer base and accelerates its previously stated strategic intent to double revenue over the five-year period ending 31 December 2028.

For the year ended 31 December 2023, CSi Palletising’s audited results showed €71.5 million of revenue and €7.3 million of adjusted EBITDA and in the six months to 30 June 2024, CSi Palletising generated unaudited revenue of €44.4 million and €6.8 million of EBITDA. Audited gross assets as at 31 December 2023 were €44.3 million.

As at 30 June 2024, CSi Palletising had a project order book of €64.3 million, underpinning management forecasts for the business for the remainder of FY24 and into FY25.

The acquisition presents numerous synergistic opportunities across both costs and sales to both CSi Palletising and Mpac across all operating functions. Strong EPS accretion is expected over a five-year strategic cycle.

Adam Holland, Chief Executive of Mpac, commented: “I’m delighted to announce the transformational acquisition of CSi Palletising, which along with our recent acquisitions of BCA and SIGA Vision, will significantly transform our customer offering and core capabilities, consistent with our stated strategic ambition. We have substantially expanded the breadth of our technology and extended our customer reach globally. We are excited about the numerous growth opportunities for the enlarged Group.”

Jan de Bruijn, CEO of CSi Palletising, commented: “CSi Palletising is very pleased with the combination of these two companies. It represents a strong fit with the strategic plans that CSi Palletising has made in the past for its Dutch, Romanian and Mexican subsidiaries. The acquisition broadens CSi Palletising’s offering to all customers. Moreover, there is a good cultural fit and it increases the possibilities for CSi Palletising colleagues to develop themselves further on an international scale. This is the best possible next step for CSi Palletising.”

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