Robinson Packaging Innovation enters agreement to purchase Poland-based manufacturer of plastic packaging Madrox for £13.2M
February 14, 2014
– Robinson is pleased to announce that it has conditionally entered into an agreement to acquire the entire issued share capital of MADROX Spó ka Jawna, a Polish based manufacturer of plastic packaging, for a consideration of GBP13.2m. The initial cash element of GBP10.6m will be funded from cash reserves and property backed bank debt.
Robinson's stated strategy is to expand its business in Central Europe and increase its turnover through the acquisition of companies that increases its relevance to its customers. Madrox is based in Warsaw and is a supplier of blow, stretch-blow and injection moulded plastic packaging primarily to major brands and private label businesses operating in the household, toiletries and cosmetics sectors in Central Europe. Madrox's accounts for the year ended 31 December 2012 reported profit before tax of GBP2.0m on a turnover of GBP9.2m.
Subject to certain conditions, Robinson will acquire Madrox for an initial consideration of approximately GBP10.6m in cash with a further consideration, estimated at GBP2.6m, dependent on Madrox's performance in 2015. The acquisition is expected to complete in May 2014. If Robinson decide not to proceed with this transaction, a penalty fee of GBP0.6m is payable.
Madrox was established in 1993 as a civil partnership and is recognised as a leading supplier of plastic packaging in Poland. Madrox operates from manufacturing premises in in Stojad a near Mińsk Mazowiecki, Warsaw, employing around 55 people.
Madrox revenues have been growing at a rate of over 10% per annum during the last three years. Its production halls are equipped with modern injection moulding machines, blow moulding machines and injection-blow moulding machines. They design and produce bottles, canisters, jars, caps and other injection moulded parts. They provide individual packaging designs for their customers.
The net assets to be acquired are expected to be GBP5.1m.
Commenting on the acquisition Richard Clothier, Chairman of Robinson, said:
"The proposed acquisition of Madrox is fully in line with our strategy to expand in Central Europe partly through selective acquisition of local plastic packaging manufacturers who supply the strong brand owners and leading private labels in our sectors. It will allow us to take a more prominent position in the growing plastic packaging markets in this region."