3 November 2014 – acquisition
The niche plastics products group has announced that it has conditionally agreed to acquire Flexipol Packaging for maximum consideration of £10.64m, with £9.82m payable on completion and the balance payable depending on whether Flexipol achieves certain financial targets. Flexipol’s products and customers are complementary with the group’s existing packaging business and the acquisition is expected to be earnings enhancing in its first full year. Apart from cost synergies there will also be cross selling opportunities and Flexipol has a high level of recurring income. To help fund the acquisition, the company has raised £5m (net) through the issue of 5.1m shares at 98p. We continue to rate the shares a BUY.