Established in 1984 and based in Hessle, Yorkshire, Synpac is a specialist manufacturer of high barrier, flexible packaging solutions, especially vacuum bags and pouches, for the food processing industry.
Plastics Capital is a specialist plastics products manufacturer focused on proprietary products for niche markets. The Group has five factories in the UK, two in China, one in Thailand.
The Group has almost 500 employees, and approximately 45% of sales are exported to over 80 countries worldwide and production is concentrated in the UK.
Plastics Capital said it was confident that Synpac has a loyal customer base with high levels of recurring business, and fits well with the Company’s Films Division comprising Flexipol Packaging and Palagan.
Flexipol, in particular, is a manufacturer of high barrier flexible packaging solutions for the food industry.
Synpac generated revenues of £4.4m in 2015, and statutory profit before tax of £800,000.
The Directors estimate that the normalised sustainable EBITDA of Synpac is circa £0.6 million, after making suitable adjustment for the significant weakening of sterling post the recent referendum to leave the EU.
The Acquisition is in-line with Plastics Capital’s stated strategy of strategic acquisitions of related specialist plastics products businesses.
Faisal Rahmatallah, chairman of Plastics Capital, said: “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. 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.”
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