European FMCG manufacturer McBride has announced the acquisition of two manufacturing facilities as part of a long-term agreement with global home care company Vestacy.

Vestacy is the production company behind popular FMCG brands, including Air Wick, Calgon and Cillit Bang.

As part of the deal, McBride will manufacture a variety of products for Vestacy which will be distributed across the newly acquired and existing sites.

Vestacy is set to fund additional equipment required for the production, which totals £34m, and McBride will be responsible for project costs and capital expenditure, which costs approximately £17m.

The deal is expected to be finalised in early 2027, and the sites are expected to be fully operational by early 2028.

According to the business, this is a strategic move which will significantly advance the company’s earnings and help meet the financial objectives.

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The company forecasted that the new agreement will create annual revenues of £170m during the second half of FY28.

Additionally, the partnership expected to boost McBride’s revenue ahead of the 25 per cent target which was set out at the Group’s 2024 Capital Markets Day.

Chris Smith, CEO of McBride, said: “This transaction represents a disciplined application of our capital allocation framework, driving profitable growth that directly aligns with our strategic priorities while we continue to return capital to shareholders through our share buyback programme.

“For the board, a partnership of this scale with a global brand owner is further validation of the embedded value within the group.

“Securing these two manufacturing sites for a nominal consideration, underpinned by long-term, highly visible contract manufacturing agreements, enables us to further expand our European operational footprint while accelerating our growth targets within the key laundry category.”