Scapa makes US acquisition

Heejae Chae

Greater Manchester-based Scapa Group, a global specialist adhesive products for the healthcare and industrial sectors, has acquired a US company for £7.68m.

The AIM-listed company based in Ashton-under-Lyne has bought the entire share capital of Market Industries, Controlled Environment Equipment Corp and CMark Films.

Manchester, Connecticut-headquartered Markel is a manufacturer of adhesive floor mats and tacky rollers used in medical clean rooms electronic and industry assembly areas, construction sites and sports venues.

The deal includes unaudited gross assets of $1.2m (£925,000). Markel’s underlying adjusted EBITDA for the year ended December 31, 2016 was $.1.7m (£1.3m).

The acquisition is expected to be earnings enhancing in the first full year and will be funded from existing cash reserves and bank facilities.

The Scapa board said it believes that Markel’s largely North American customer base has a similar profile to Scapa’s, offering cross-selling opportunities and that its high-quality core clean room contamination prevention products will enhance Scapa’s current products offerings in Europe.

Scapa Group chief executive Heejae Chae said: “The acquisition of Markel is a part of our industrial strategy to further drive the return on capital employed through concentration on our core customers and markets as well as optimisation of our manufacturing assets.”

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