More details about this acquisition :1/ The company claims that...

More details about this acquisition :

1/ The company claims that it increases EPS pro forma by 40 %.
However, underlying EPS 20 is increasing by only 30 % when we compare with the underlying EPS 20 of 11.1 c published by PBP.
Main difference : to calculate pro forma growth, the company assumes that the acquisition was completed on 1/7/19.
It may be one reason why one broker today increases its target price by only 13 %.

2/ The EPS impact does not include any synergy.
The synergies should be significant both for sales (cross selling opportunities between manufacturing and packing) and costs.

3/ Valuation
Based on FY 20 figures after acquisition, PE 20 of 13.9, EV/EBITDA of 6.7 and free cash flow yield estimated at 7.5 %.
Interesting given the stability of the business