March 14th, 2008
RNS Number:1774Q Plastics Capital PLC 14 March 2008 For Immediate Release 14 March 2008 Plastics Capital Plc ("Plastics Capital" or the "Company") Acquisition of Palagan Limited ("Palagan") Plastics Capital Plc (AIM;PLA), a fast-growing acquisitive plastics products manufacturer focused on proprietary products for niche markets, is pleased to announce the acquisition of Palagan and its associated companies, located in Dunstable, Bedfordshire, for total consideration of £6.4m. The acquisition is being funded from Plastics Capital's existing cash resources together with an increase in senior debt facilities from Royal Bank of Scotland, whilst £0.5m of the consideration will be deferred for 2 years. Palagan is a long established producer of high performance film packaging solutions. Palagan customises its products to between 4,000 and 5,000 different specifications. The ability to tailor products to customers' requirements and turn design solutions into in-line automated production is a key success factor and accounts for Palagan's marketplace success. Turnover for the year ended 30 October 2007 is £8.8 million. Sales have increased at a rate of 6.4% p.a. over the last seven years. In the financial year to 30 October 2007, Palagan had audited EBITDA of £1.07m - these accounts included certain costs that would not be continuing under Plastics Capital's ownership. Net assets acquired amount to £3.5m at completion. Palagan employs 40 staff and has a customer base of 500, with the largest customer accounting for 4.5% of sales.
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