Major acquisition and equity raise. Fair Value raised to 865p
Mpac has announced an offer to acquire CSi Palletising, a specialist in the design, manufacture and installation of end-of-line automation and palletising solutions, for a maximum consideration of €56.0m (£50.0m).Subject to approval at a General Meeting, the acquisition will be financed through the issue of equity to raise up to £30.0m (gross) at 400p per share, and drawdown from Mpac’s debt facilities.
The addition of CSi continues Mpac’s track record of growth augmented by major acquisitions; we estimate that by FY26 the Group will have achieved its 5-year goal of doubling FY23 revenue and profit, ahead of plan.
Upon completion, the deal will be significantly earnings accretive, with our revenue and adj. EBITDA estimates for FY25 and FY26 all rising by at least 40%. Accordingly, we materially raise our Fair Value per share to 865p (from 550p).
Mpac Group is focused on its Packaging Machinery business, Mpac Langen, which designs, precision engineers and manufactures packaging solutions, machinery and high specification automation, secondary packaging equipment and end-of-line robotics and at-line instrumentation and testing solutions as well as providing solutions including the design and integration of packaging systems.
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