Mpac Group strengthens packaging automation with acquisition of SIGA Vision
Smart factories depend on smart systems, enabling FMCG/healthcare brands to not only automate production, lower costs and reduce downtime, but also improve operational efficiency, product quality and ROIs.
Implementing such advanced technology, however, is not trivial. It typically involves engaging engineering experts like () , a specialist provider of full-line, high-speed packaging and automation solutions.
Indeed, to further enhance these end-to-end capabilities, the company announced today that it had acquired SIGA Vision based in Axminster (south Devon, UK) - a leading designer of automated visual inspection solutions for production line problems, material handling, defect detection and quality control. Here SIGA's 'customer tailored' solutions employ best-in-class robotic guidance cameras and next-generation image processors to help prevent human error, reduce waste, streamline processes and cut costs.
Commercial terms were not disclosed given the 'de minimis' nature of the deal, albeit for the year ended March 2023, SIGA had 4 employees and reported net assets of £1.5m, including a £1.2m freehold property.
Better still, both businesses already have a long history of working together, so the integration process should be fairly straightforward. Plus, strategically, the transaction provides with a platform to offer fully integrated support to its existing and future customers with vision-related solutions - a key component for full-line packaging automation, which is deployed across the world.
CEO Adam Holland commenting: "I am delighted that we have been able to acquire SIGA, a leader in its field that has been a partner to Mpac for many years. The solutions provided by SIGA are critical to our customers' operations and we look forward to welcoming them into the group as we further develop our business, global customer support and technology offering."
Lastly, interims are scheduled for Tuesday, 10th September. Shore Capital Markets has a fair value of 600p/share, alongside FY24 forecasts of adjusted PBT and EPS of £10.5m and 38.7p respectively on turnover up 5% to £120m.
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