13 March
2024
Macfarlane Group
PLC
("Macfarlane", the "Company"
or the "Group")
Earnings accretive
acquisition of protective packaging distributor,
Allpack
Macfarlane Group PLC is pleased to
announce the acquisition of Allpack Packaging Supplies Limited
("Allpack"). This earnings-enhancing acquisition further
progresses Macfarlane's strategy to build its protective packaging
business through a combination of organic and acquisitive
growth.
Strategic highlights
· A well-established business based in East Anglia, supplying
protective packaging products to customers across a wide range of
sectors, from its warehouse facilities near Bury St
Edmunds.
· Allpack has an experienced team of 10 employees, including
three Directors, all of whom will remain with the business
following the acquisition.
· There are opportunities for Allpack's customers to benefit
from access to Macfarlane's extensive range of protective packaging
products and services.
· This earnings-accretive acquisition continues to demonstrate
Macfarlane's 'buy and build' strategy in delivering further
stakeholder value.
Transaction details
·
Macfarlane's wholly-owned subsidiary, Macfarlane
Group UK Limited, has acquired 100% of Allpack for a maximum cash
consideration of £3.25 million (including an earn-out of up to
£0.75 million based on agreed profit growth targets over one
year).
·
A further adjustment is due for net assets in
excess of £0.4 million with the expected net assets on completion
being £2.2 million, including £1.9 million of net cash.
·
The consideration is being financed entirely from
Macfarlane's existing bank facility.
·
For the year ended 31 December 2023, Allpack
generated sales of £3.0 million, with EBITDA and pre-tax profits of
£0.6 million.
Peter Atkinson, Chief Executive of
Macfarlane, 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. Allpack is a well-run, successful protective
packaging distributor with an experienced management team. The
addition of Allpack to the Macfarlane Group further strengthens our
ability to serve customers in East Anglia. We look forward to
working with the team at Allpack to support its continued
growth."
Further enquiries:
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Macfarlane Group
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Tel: 0141 333 9666
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Peter Atkinson
Chief Executive
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Ivor Gray
Finance Director
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Spreng Thomson
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Callum Spreng
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Mob: 07803 970103
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Legal Entity Identifier (LEI):
213800LVRYDERSJAAZ73
Notes to
Editors:
·
Macfarlane Group PLC has been listed on the
Premium segment of the Main Market of the London Stock Exchange
(LSE: MACF) since 1973 with over 70 years' experience in the UK
packaging industry.
·
Through its two divisions, Macfarlane Group
services a broad range of business customers, supplying them with
high quality protective packaging products which help customers
reduce supply chain costs, improve operational efficiencies and
sustainability and enhance their brand presentation. The divisions
are:
o Packaging
Distribution - Macfarlane Packaging Distribution is
the leading UK distributor of a comprehensive range of protective
packaging products; and
o Manufacturing Operations -
Macfarlane Design and Manufacture is
a UK market leader in the design and production of protective
packaging for high value and fragile products.
·
Headquartered in Glasgow, Scotland, Macfarlane
Group employs over 1,000 people at 39 sites, principally in the UK,
as well as in Ireland, Germany and the Netherlands.
·
Macfarlane Group supplies more than 20,000
customers, principally in the UK and Europe.
·
In partnership with 1,700 suppliers, Macfarlane
Group distributes and manufactures 600,000+ lines supplying to a
wide range of sectors, including: retail e-commerce; consumer
goods; food; logistics; mail order; electronics; defence; medical;
automotive; and aerospace.