The acquisition forms part of Mpac's efforts to position itself as a market leader in the provision of full-line packaging solutions
Mpac Group, a packaging and automation solutions provider, has closed the acquisition of Switchback Group, a US-based supplier of packaging machinery and automation solutions, in a deal worth $13m.
As per the terms of the deal, Mpac will pay a further $2m in earn-out consideration to Switchback Group depending on performance.
Switchback is engaged in providing packaging machinery and automation solutions for customers in the food, beverage and healthcare markets.
Employing 45 people, the firm is said to have strength in the high growth craft brewing industry and is focused on increasing the use of recyclables, aluminium cans, and cardboard packaging.
The acquisition is a part of Mpac’s efforts to position itself as a market leader in the provision of full-line packaging solutions for the pharmaceutical, healthcare and food and beverage sectors.
In a press a statement Mpac said: “The range of products offered by Switchback gives further breadth and depth to Mpac’s cartoning and end of line solutions.
“Switchback will provide a platform to further build our business in the USA giving access to a wider customer base and the opportunity to provide existing customers with a wider range of productivity solutions as the industry trends towards lower volumes and higher variety.”
Mpac to continue to support Switchback’s strategic growth plans
In addition to continuing to support Switchback’s growth plans, Mpac will provide access to the group resources, global sales and service network to leverage growth opportunities in its existing markets of healthcare and food.
Mpac CEO Tony Steels said: “The acquisition of Switchback represents another key stage in the strategic development of Mpac, providing a strong USA footprint, together with a great range of products, talented employees that have demonstrated entrepreneurial growth to become market leaders with embedded customer relationships.”