REG - McBride PLC - Proposed Acquisition & Trading Conditions Update

McBrideAnnouncement

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RNS Number : 1529Z  McBride PLC  02 April 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

2 April 2026

McBride plc

 

Proposed Acquisition of Eurotab Group

 & Trading Conditions Update

 

Proposed acquisition

 

·     Acquisition of Eurotab Group aligned with growth strategy,
strengthening customer relationships across Europe

·     Eurotab further boosts McBride Unit Dosing division's position as a
leading EU producer of detergent products in tablet format

·     Compelling financial case with strong synergy opportunities,
immediately accretive to earnings per share, incremental EBITDA supports move
towards strategic aim of 10% EBITDA margin

·     The Proposed Acquisition will not impact the Group's current share
buyback programme

 

McBride plc ("McBride" or the "Group"), the leading European manufacturer and
supplier of private label and contract manufactured products for the domestic
household and professional cleaning/hygiene markets, today announces that its
Unit Dosing division has made a binding offer to the shareholders of Eurotop
SAS for the acquisition of the Eurotab Group ("Eurotab"), for an expected cash
consideration of EUR 40 million (£34.5 million), subject to customary closing
adjustments (the "Proposed Acquisition").

Overview of Eurotab

Eurotab is a leading, privately-owned specialist in the design and manufacture
of solid-format cleaning and hygiene solutions, primarily serving private
label and certain contract manufacturing markets. It provides precision powder
compaction technology supporting a diverse tablet format-based product range,
including automatic dishwasher tabs, moisture absorbing solutions and
disinfecting bleach tablets. In the year to 30 June 2026, Eurotab is expected
to report consolidated revenues of EUR 65 million with the majority of the
revenues in Europe derived from its two specialised manufacturing sites in
France. In addition, Eurotab operates a smaller business supplying the market
in Turkey from its facility located near Istanbul.

Strategic rationale for the Proposed Acquisition

The Proposed Acquisition is in line with the Group's growth strategy and is
anticipated to further strengthen McBride's position as a leading detergent
producer in Europe. The transaction will deepen relationships with certain
existing customers and will also provide the opportunity to develop the
Turkish operation as a platform for expanding the Group's manufacturing
capabilities and for accessing new target markets over time.

Eurotab's free production capacity will help to address capacity constraints
within McBride's Unit Dosing division, supporting future growth with lower
capital expenditure needs, while enhancing security of supply and customer
service levels.

The enterprise value for the Proposed Acquisition is dependent on Eurotab's
closing 12 month EBITDA at completion. It is currently anticipated that this
will result in an enterprise value of EUR 38.2 million plus a payment of EUR
1.8 million for acquired tax losses. The enterprise value will be subject to
customary closing adjustments to determine the final purchase price.

The anticipated purchase price represents an underlying EBITDA multiple of
5.2x or 4.6x net of the value of acquired tax losses which the Group expects
to use over time. When adjusting for conservative synergies the underlying
EBITDA multiple equates to 3.1x.

The Proposed Acquisition is expected to be accretive to earnings per share in
the first full year of ownership and will raise overall Group margins, adding
approximately 0.5 percentage points to the Group's EBITDA margin, and moving
the Group towards the 10% target set at the 2024 Capital Markets Day. The
Proposed Acquisition is expected to generate attractive returns well in excess
of the Group's cost of capital.

The consideration will be financed through the Group's existing banking
facilities, with the Group's net debt to EBITDA ratio expected to be slightly
above the Capital Markets Day target of 1.5x for approximately one year post
completion.

Chris Smith, CEO of McBride, commented:

"The proposed acquisition of Eurotab Group represents an attractive strategic
opportunity and is aligned with our growth strategy. It is expected to further
reinforce the strong market position of McBride's Unit Dosing division in the
European detergent market and bring meaningful scale to the Group. The
transaction will enhance the resilience of the Unit Dosing division through
the addition of two new product categories, broaden our product and customer
offering and deepen relationships with key retail customers, while providing
access to new markets. We expect the acquisition to be immediately earnings
accretive from completion and to deliver meaningful synergies. The proposed
acquisition will be funded from existing facilities and will have no impact on
our share buyback programme.  The Board continues to believe that McBride's
market capitalisation remains significantly undervalued and this proposed
acquisition, along with the ongoing buyback, reflects our confidence in the
long-term value of the business."

Conditions to completion and expected timing

In accordance with applicable French legal requirements, the acceptance of
McBride's offer is subject to the completion of information and consultation
procedures with the French employees and employee representative bodies of the
Eurotab Group. Subject to the completion of those procedures, it is
anticipated that the parties will enter into the final sale and purchase
documentation. The transaction would also be subject to certain other
conditions to completion.

It is anticipated that, if completed, the Proposed Acquisition will close
between June 2026 and the end of the first quarter of the Group's 2027
financial year. A further update announcement will be made as and when
appropriate.

 

Trading Conditions

The conflict in the Middle East has to date had a relatively small impact on
trading activities, mostly limited to haulage cost increases from higher fuel
prices.  These conditions have now started to change, with the most heavily
impacted chemical and packaging suppliers implementing price increases to
recover higher petrochemical derived feedstocks and / or the impact of higher
energy costs in chemical and packaging production. The first signs of possible
shortages in supply chains around the world are beginning to emerge.

As a result, the Group will see elevated input costs in April and expects
further increases in the near future. Consequently, the Group has already
informed all customers about temporary price adjustments, or surcharges to
current pricing, to recover these higher, beyond our control, cost impacts
from the Middle East conflict.

The Group notes that during previous periods of global macro uncertainty,
there has been resilient and growing demand for private label cleaning
products as a result of the compelling value for money proposition for
consumers.

 

For further information, please contact:

 

 McBride plc                               Via TEAM LEWIS
 Chris Smith, Chief Executive Officer
 Mark Strickland, Chief Financial Officer

 TEAM LEWIS                                McBride@teamlewis.com (mailto:McBride@teamlewis.com)
 Hannah Scott                              +44 (0)20 7802 2634
 Galyna Kulachek                           +44 (0)20 7802 2617

 

 

Note: This announcement contains inside information which is disclosed in
accordance with the Market Abuse Regulation which came into effect on 3 July
2016. The person responsible for arranging the release of this announcement on
behalf of McBride is Rob Henry, General Counsel and Company Secretary.

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