Amcomri sells Premier Limpet for £10.1m to fund future acquisitions (AMCO)

Disposal generates cash for next stage of growth strategy

Amcomri Group (LSE:AMCO) has agreed the sale of Premier Limpet, the UK’s largest independent manufacturer of printed and plain adhesive tape, to Dalpo Group UK for a minimum consideration of £10.1 million.

Following the repayment of debt, the transaction is expected to deliver approximately £7 million in net cash proceeds. The disposal comes after a three-year programme that improved Premier Limpet’s profitability and included the integration of a bolt-on acquisition in the water-activated adhesive tape market, positioning the business for its next phase of expansion under its new European owner.

Sale highlights success of acquisition strategy

According to Amcomri, the disposal represents a return of around 28 times its invested capital, demonstrating the effectiveness of its “Buy, Improve, Build” strategy in creating value from specialist industrial businesses.

The company intends to reinvest the proceeds into further acquisitions across the specialist engineering and industrial manufacturing sectors, supporting its acquisition-led growth strategy. Management also confirmed that trading remains in line with market expectations, providing additional confidence as it pursues new investment opportunities.

Strong performance balanced by premium valuation

Amcomri’s investment outlook is supported by solid financial performance and favourable technical indicators, reflecting positive momentum in the company’s shares.

However, its valuation remains relatively demanding, which could limit upside if future growth expectations are not met. With no recent earnings call updates or significant additional corporate developments beyond the disposal, these factors have little impact on the current outlook.

More about Amcomri Group Plc

Amcomri Group plc is a UK and Ireland-focused engineering services and industrial manufacturing group operating under a “Buy, Improve, Build” strategy. Through its specialist engineering and business-to-business manufacturing divisions, the company supplies technical products and services to customers across the industrial, infrastructure, transport and energy sectors. Amcomri primarily acquires owner-managed businesses, seeking to improve operational performance while supporting long-term organic and acquisition-driven growth.