The plastics products manufacturer said GBP2.8 million cash will be paid on completion of the acquisition, with a further GBP310,000 payable after 12 months. The deal will be funded through increased debt facilities.
In the financial year ended May 31 2015, Synpac generated revenue of GBP4.4 million and a pre-tax profit of GBP800,000.
Plastics Capital said Synpac, which makes vacuum bags and pouches for the food-processing industry, should fit well within the company's existing film packaging unit. "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," says Faisal Rahmatallah, Plastics Capital chairman.