Plastics products group Plastics Capital has completed the previously announced acquisition of Flexipol Packaging in a transaction worth £10.64m.
The acquisition, which was originally announced on 3 November 2014, was part funded by an equity placing of 5,102,041 new ordinary shares issued at 98p per share in order to raise £5m.
Following the acquisition, Plastics Capital expects near-term cost synergies from increased buying power for the company and long-term cross-selling opportunities.
According to Plastics Capital, the maximum consideration payable pursuant to the acquisition is based on £9.82m payable in cash on completion and £0.82m of earn-out payments.
Plastics Capital chairman and CEO Faisal Rahmatallah said: "We are very pleased to announce the acquisition of Flexipol Packaging Limited. Flexipol is very clearly a business that meets our acquisition criteria - specialty products, high recurring revenues with loyal customers, limited competition and healthy financial performance.
"This acquisition meets our criteria. It is complementary to Palagan and this should enable us to extract significant synergies in due course through cross selling, operational efficiencies and raw material cost savings."
In a bid to part finance the acquisition of Flexipol, the company announced an oversubscribed £5m placing with both new as well as existing institutional shareholders, at a discount of 4.4%.
Established and incorporated in December 2002, Plastics Capital concentrates on proprietary products for niche markets and has four factories in the UK.
