Niche plastics group Plastics Capital (London) has acquired UK-based food packaging manufacturer Synpac Ltd. (Hessle) in a £3.1 million deal. Synpac produces vacuum bags and pouches for the food processing industry.
Plastics Capital said the purchase fits very well with its films division comprised of Flexipol Packaging Ltd. and Palagan Ltd. Flexipol, in particular, is a manufacturer of high barrier flexible packaging solutions for the food industry.
“We are very pleased to announce the acquisition of Synpac Limited. Synpac is a business that meets our acquisition criteria, namely specialty products, high recurring revenues with loyal customers, limited competition and healthy financial performance,” said Faisal Rahmatallah, Chairman of Plastics Capital.
“It is complementary to our other Films Division businesses and this should enable us to achieve significant synergies in due course through cross selling, operational efficiencies and cost savings,” Rahmatallah added.
Plastics Capital said there is minimal integration risk and the enlarged packaging business can deliver organic revenue growth in addition to increasing the operating margins. The group has been tracking Synpac for three years.
In the financial year ended 31 May 2015, Synpac generated revenues of £4.4. The company’s founder will be retiring after an agreed handover period.
Plastics Capital has five factories in the UK, two in China, one in Thailand and sales offices in the US, Japan, India and China.