Mpac Group Plc Share News (MPAC)

Mpac Group PLC - Tadcaster, North Yorkshire-based high-speed packaging and automation solutions - Agrees to buy Elstar International BV, which operates as CSi Palletising, at an enterprise value of EUR64.3 million. CSi Palletising provides design, manufacturing and installation services for end-of-line automation and palletising solutions. It is based in the Netherlands, with a factory in Romania. CSi Palletising recorded EUR7.3 million in adjusted earnings on EUR71.5 million in revenue in 2023 and currently has a project order book of EUR64.3 million.

Mpac will pay EUR41.5 million in cash up front. It also will issue the sellers 1.0 million Mpac shares at 400 pence each. The remainder will be in vendor loans and deferred payments. To fund the cash portion, Mpac places 7.3 million shares at the same 400p price, raising GBP29 million. The placing is run on Tuesday by Shore Capital Stockbrokers Ltd and Panmure Liberum Ltd. The placing shares represent 25% of Mpac's enlarged total. Mpac also announces a retail offer of shares at the same price to raise a further GBP1 million.

Mpac last month announced the USD17 million acquisition of Boston Conveyor & Automation Inc, a US-based supplier of robotic automation and conveyor solutions to the food, life sciences and general industry sectors. That deal consisted of USD11 million in cash and 1.1 million new Mpac shares at 430p. Mpac on Tuesday calls a general meeting of share holders for October 18 to approve the latest acquisition and equity raise.

Current stock price: 425.87p, up 2.6% in London on Tuesday

12-month change: doubled from 197.50p

By Tom Waite, Alliance News editor

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