8 July 2024
Macfarlane Group
PLC
("Macfarlane" or the
"Group")
Earnings accretive
acquisition of protective packaging manufacturer,
Polyformes
Macfarlane Group PLC announces the
acquisition of Polyformes Limited ("Polyformes") for up to a
maximum cash consideration of £11.5 million, including an earn-out
of up to £4.8 million over two years. This earnings-enhancing
acquisition demonstrates further progress in our strategy to build
the Group's protective packaging business through a combination of
organic and acquisitive growth.
Strategic highlights
· Founded in 1977, Polyformes designs and converts foam
primarily for specialist protective packaging applications
supplying to customers in the aerospace, medical, defence and industrial sectors,
throughout the UK.
· Polyformes is based in Leighton Buzzard and has an experienced
team of 60 employees, including its three directors who will all
remain with the Group following the acquisition.
· There
are significant opportunities for both Polyformes and Macfarlane to
benefit from access to their respective industry expertise, ranges
of bespoke protective packaging products and common supplier
base.
·
For the year ended 31 December 2023, Polyformes
generated sales of £9.3 million, with EBITDA of £1.5 million and
pre-tax profits of £1.4 million.
· This
earnings accretive acquisition further demonstrates Macfarlane's
comprehensive 'buy and build' strategy in delivering further
stakeholder value.
Transaction details
·
Macfarlane's wholly owned subsidiary, Macfarlane
Group UK Limited, has acquired 100% of Polyformes for a maximum
cash consideration of £11.5 million (including an earn-out of up to
£4.8 million based on agreed profit growth targets over two
years).
·
A further adjustment is due for net assets in
excess of £1.6 million with the expected net assets on completion
being £1.8 million, including £0.7 million of net cash.
·
The consideration is being financed entirely from
Macfarlane's existing bank facility. The Group continues to operate
well within its bank facilities of £35 million and related
covenants, which are committed until December 2025.
Peter Atkinson, Chief Executive of
Macfarlane, said:
"Polyformes
is a profitable, growing, well invested company with an experienced
management team that is fully committed to the
business. We look
forward to working with the team at Polyformes to support its
continued growth and develop opportunities for us to work together
to provide our customers with a broader portfolio of protective
packaging solutions."
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 40 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.