Macfarlane Group pushes south with £3m deal

Macfarlane Group, the Glasgow-headquartered packaging provider, has further extended its reach south of the Border by sealing a £3 millionplus takeover deal.

Bosses said the acquisition of East Anglia-based Allpack Packaging Supplies would be earnings enhancing and bolster the group’ s protective packaging business. Last month, Macfarlane said it was “well advanced” with a number of potential bolt-on deals as it continuesto benefit from a series of strategic acquisition sand tackle tough market conditions.

Allpack supplies protective packaging products to customers across a wide range of sectors from its warehouse facilities near Bury St Edmunds. It has ten employees, including three directors, all of whom will remain with the business following the acquisition.

Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK, is buying 100 per cent of Allpack for a maximum cash sum of £3.25m, including an earn-out of up to £750,000 based on agreed profit growth targets over one year. A further adjustment is due for net assets in excess of £400,000 with the expected net assets on completion being £2.2m, including £1.9m of net cash. It is being financed entirely from mac far lane’ s existing bank facility.

Chief executive Peter Atkinson said: “This latest transaction follows three acquisitions undertaken in the prior 12 months, and clearly demonstrates further progress in executing against our buy and build strategy. all pack is a well run, successful protectivepackaging distributor with an experienced management team .”

Analysts at house brokerage Shore Capital noted: “Allpack is a good strategic and complementaryfit within mac far lane’ s manufacturing operations - in line with its key ‘buy & build’ growth strategy.”