Mpac acquires US packaging business Switchback
Packaging and automation solutions group Mpac said on Wednesday that had acquired US company Switchback in a deal worth as much as $15.0m.
Mpac will pay $13.0m in cash for Switchback, a supplier of packaging machinery and automation solutions to the food, beverage and healthcare markets, with a further earn-out consideration of $2.0m to be paid depending on performance.
The AIM-listed group highlighted that it would maintain "a strong balance sheet" following the transaction, with a net cash position and an undrawn £10.0m revolving credit facility.
Chief executive Tony Steels said: "The acquisition of Switchback represents another key stage in the strategic development of Mpac, providing a strong USA footprint, together with a great range of products, talented employees that have demonstrated entrepreneurial growth to become market leaders with embedded customer relationships.
"Switchback's performance during the Covid pandemic has been strong with a good order book, demonstrating the high quality of the business."
As of 0925 BST, Mpac shares were up 3.57% at 290.0p.