API’s new laminates deal worth up to £100m

API Group has landed a five-year deal with an unnamed “global consumer goods company” worth between £15m-£20m a year in revenues.

The deal, which will begin in April next year, will provide “a step change in the level and security of earnings in the Laminates segment”, the company said.

As a result, the company said it would need to invest in new plant and equipment in the laminates business unit at its Poynton headquarters. It plans to spend £3m-£4m upgrading machinery in a bid to boost capacity ahead of the contract beginning next year.

In early trading this morning, the company’s shares climbed by over 15% to 46.5p.