Mpac Group, the UK-based packaging and automation technology company, has agreed the sale of Mpac Lambert for up to £20 million ($26.8m), to significantly reduce net debt, according to the company’s latest trading update.
The decision to sell Tadcaster-based Lambert to Mech.i.Tronic S.p.A, an Italian-headquartered provider of automation technologies, followed a strategic review that began in the fourth quarter of 2025, the company said.
It concluded that Lambert, which was founded in 1973 and acquired by Mpac in 2019 for £15m ($20m), ‘did not fit within the group’s ongoing strategy’.
Since 21 April 2026, trading margins have continued to be impacted by delays in customer decision-making on capital investments, heightened competitive pricing pressure, and lower operational leverage arising from reduced original equipment volumes, Mpac’s trading statement said.
Difficult market conditions
In response to the continued challenging market backdrop, the group implemented further actions to ‘drive volume, align operational capacity with current demand levels, reduce overhead costs, and improve cash generation’.
This resulted in an improvement of the order book from £90m ($120.8m) to £98.8m ($132.6m) at the end of May, the company’s trading notice stated.
Lambert creates bespoke automation for its customers’ product assembly processes, including specialist filling and dosing, with a focus on the medical and consumer healthcare markets. The business employs approximately 160 staff.
The net proceeds from the sale will be used to significantly reduce Group net debt, which stood at £47.9m ($64.3m) at 31 December 2025, according to the Mpac trading statement.
“Macroeconomic trading conditions in the first half of 2026 have remained challenging, with continued delay to customer decision-making and gross margins impacted by continued competitive pricing pressures and lower operational leverage,” explained chief executive officer Adam Holland.
‘Acted decisively’
“However, the group has acted decisively to manage load-capacity, reduce overheads and preserve cash generation. This has established the conditions for the group to rebound strongly when market sentiment recovers.
“Alongside this work, since the fourth quarter of 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.”
Mpac employs more than 1,000 people around the world, including more than 500 dedicated global engineers and designers.
Headquartered in Coventry, UK, the group operates sites in the US, Mexico, Canada, the Netherlands, Romania, Malaysia and Singapore.
