Mpac Group Plc Share News (MPAC)

(Sharecast News) - Packaging company MPAC has agreed to acquire American robotic automation and conveyor solutions business Boston Conveyor & Automation from Jim Laverdiere in a deal worth $17.0m.

MPAC said on Wednesday that it will pay $11.0m in cash for BCA, with the remaining $6.0m to be satisfied by the issue of 1.05m new ordinary shares at an issue price of 430.0p each.

The AIM-listed group stated the cash consideration would be satisfied from its existing cash resources and its revolving credit facility, which its lender has agreed to increase from £20.0m to £25.0m.

MPAC expects the acquisition to be earnings enhancing in the first full year.

Chief executive Adam Holland said: " 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."

As of 1125 BST, MPAC shares were up 1.28% at 435.50p.

Reporting by Iain Gilbert at Sharecast.com