Mpac Group plc - Acquisition

Dear client

Mpac Group plc is pleased to announce that its indirectly wholly owned subsidiary Mpac Bidco, has entered into the Acquisition Agreement with the Sellers to conditionally acquire the entire issued share capital of Elstar International B.V. a private limited liability company incorporated under the laws of the Netherlands that operates under the name CSi Palletising, a leading provider of design, manufacturing and installation services for end-of[1]line automation and palletising solutions. 

The consideration payable to the Sellers for CSi Palletising is an enterprise value of €56 million which is to be satisfied as follows: 

o Cash Consideration of €41.5 million on Completion; 

o €5 million through the issue of 1,039,500 Consideration Shares at the Issue Price of 400 pence per share (subject to a two-year lock-up); 

o €6 million through the Vendor Loans; and 

o €3.5 million by two deferred consideration payments of €1.75 million each which become payable on 1 January 2026 and 1 January 2027. 

The Company submitted a notification to the Romanian Competition Council for its authorisation of the Acquisition from a national security perspective ahead of publishing the Circular. Based on advice it has received, the Company expects a decision to be made by the Romanian Competition Council within the next couple of months, with Completion expected to be in December 2024.

Please see attached notification received.  

Please be aware we do not have any holders on the platform.

Kind regards