A Tadcaster-based packaging automation company has been sold to an Italian firm for an initial £16million, with up to £4million more depending on how well the business performs.
The MPAC Group announced the sale of its division Mpac Lambert to Italy’s Mech.i Tronic S.Pa in a trading update earlier today.
MPAC, whose UK hq is in Tadcaster, has sister companies in the US, the Netherlands, Singapore and Malaysia.
Founded in 1973 and acquired by Mpac in 2019 for £15m, Lambert creates tailor-made automation for product assembly processes.
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The Tadcaster-based business employs around 160 people.
The sale of the Tadcaster business was announced in an update on the company’s latest financial figures, which said trading of the overall business has been harmed by customers taking longer to confirm their purchasing decisions.
Thus, the company expected to report a drop in profits this year.
The company has taken action to drive sales and align them to operational capacity. This has led the pre-order sales book to rise from £90 million on December 31 to £98.8million on May 31.
As part of a broader strategic review started in last autumn, the overall company determined Mpac Lambert “did not fit within the Group’s ongoing strategy.”
The update said Mpac Lambert had net assets of £2.1m and generated a loss before taxation of £1.6m in FY 2025. The net proceeds from the sale will be used to significantly reduce Group net debt, which stood at £47.9m at December 31 2025.
Adam Holland, Chief Executive Officer, said the overall business has faced “challenging” economic trading conditions, but the sale and other actions has established “conditions for the Group to rebound strongly when market sentiment changes.”
“Alongside this work, since Q4 2025, we have been seeking to align the Group towards scalable, full-line packaging machinery solutions. The sale of Lambert is an important step in this strategy. This transaction represents a positive outcome for employees and customers and, on closure, will deliver a significant reduction in net debt for the Group.”
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