McBride - strategic partnership drives c.16% FY29E PBT uplift

McBride has announced a transformational business win, with a strategic contract manufacturing partnership for laundry liquids with Vestacy, the global home care company behind brands including Calgon, Woolite, Air Wick, Cillit Bang and Mortein. Two long-term (5-8 years) contracts have been signed that are anticipated to generate for McBride £170m revenues at maturity, driving a c.16% increase in our FY29E revenues, Adj. PBT and Adj. EPS. It has agreed to acquire two dedicated manufacturing facilities in Spain and Portugal for a nominal consideration and will also manufacture a variety of household products for Vestacy from its existing sites across Belgium, Italy, Poland, the UK and France. This partnership is highly earnings accretive and, along with the recent strategic acquisition of Eurotab, highlight McBride’s multiple levers for profitable growth. We raise our Fair Value / share from 245p to 265p, the latter equivalent to c.10x cal 2027 PER.