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(Sharecast News) - Packaging company MPAC has agreed to acquire American robotic automation and conveyor solutions business Boston Conveyor & Automation from Jim Laverdiere in a deal worth $17.0m.
MPAC said on Wednesday that it will pay $11.0m in cash for BCA, with the remaining $6.0m to be satisfied by the issue of 1.05m new ordinary shares at an issue price of 430.0p each.
The AIM-listed group stated the cash consideration would be satisfied from its existing cash resources and its revolving credit facility, which its lender has agreed to increase from 20.0m to 25.0m.
MPAC expects the acquisition to be earnings enhancing in the first full year.
Chief executive Adam Holland said: " I'm delighted to announce the acquisition of BCA, another key milestone in Mpac's strategic journey, bringing capability upstream of our Langen and Switchback businesses into the group's customer offering.
"BCA is a high-quality business with exceptionally talented employees, and further expands Mpac's physical footprint in North America. I am excited by the opportunity to provide the customers of both businesses with an expanded technology capability."
As of 1125 BST, MPAC shares were up 1.28% at 435.50p.
Reporting by Iain Gilbert at Sharecast.com
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