Acquisition

RNS Number:1774Q
Plastics Capital PLC
14 March 2008


For Immediate Release                       14 March 2008


               Plastics Capital Plc
           ("Plastics Capital" or the "Company")

          Acquisition of Palagan Limited ("Palagan")


Plastics Capital Plc (AIM;PLA), a fast-growing acquisitive plastics products
manufacturer focused on proprietary products for niche markets, is pleased to
announce the acquisition of Palagan and its associated companies, located in
Dunstable, Bedfordshire, for total consideration of £6.4m. The acquisition is
being funded from Plastics Capital's existing cash resources together with an
increase in senior debt facilities from Royal Bank of Scotland, whilst £0.5m of
the consideration will be deferred for 2 years.


Palagan is a long established producer of high performance film packaging
solutions. Palagan customises its products to between 4,000 and 5,000 different
specifications. The ability to tailor products to customers' requirements and
turn design solutions into in-line automated production is a key success factor
and accounts for Palagan's marketplace success.


Turnover for the year ended 30 October 2007 is £8.8 million. Sales have
increased at a rate of 6.4% p.a. over the last seven years. In the financial
year to 30 October 2007, Palagan had audited EBITDA of £1.07m - these accounts
included certain costs that would not be continuing under Plastics Capital's
ownership. Net assets acquired amount to £3.5m at completion. Palagan employs 40
staff and has a customer base of 500, with the largest customer accounting for
4.5% of sales.

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