1st May 2019 09:18
LONDON (Alliance News) - Mpac Group PLC on Wednesday said it bought Lambert Automation Ltd for GBP15 million in cash, while reporting good progress in the trading performance for 2019.
Mpac shares were trading 13% higher on Wednesday morning at 148.50 pence each.
Lambert provides technology automation solutions to the medical and consumer healthcare markets. For 2018, the company reported pretax profit of GBP1.3 million on revenue of GBP17.9 million.
Mpac said Lambert recorded order intake of GBP24.5 million in 2018, entering 2019 with a significantly higher order book than the previous year, providing confidence in its expected out-turn for the current financial year.
"Lambert entered 2019 with a significantly higher order book than the previous year and I am excited about the potential of the combined business and the momentum it brings to the fulfilment of our strategic plans," said Mpac Chief Executive Tony Steels.
The packaging solutions company said, in addition to the initial consideration, it will pay an earn-out consideration on the basis of a multiple of five times the extent to which the average annual earnings before interest, taxes, depreciation, and amortization of Lambert for the three years to the end of 2021 exceeds GBP2.5 million. The earn-out consideration is capped at a maximum of GBP2.5 million and will be paid in cash, Mpac noted.
Three of the existing shareholders, including Warren Limbert, managing director, will remain with Lambert for at least the next three years.
It is expected that the acquisition will be immediately materially earnings enhancing for Mpac.
Separately, Mpac said its trading performance in the current financial year is in line with the board's and market expectations. Order and quote activity remain strong and the current order book is significantly above the previous year.
"The group has continued the momentum from the second half of 2018 into the start of 2019 and I am confident that we will be able to deliver results for the full year in line with expectation," added Steels.
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