13 January
2025
Macfarlane Group
PLC
("Macfarlane" or the
"Group")
Earnings-enhancing
acquisition of Pitreavie, a leading protective packaging
manufacturer and distributor based in Scotland
Macfarlane Group PLC announces the
acquisition of The Pitreavie Group Limited ("Pitreavie") for a
maximum cash consideration of £18.0 million, including an earn-out
of up to £4.0 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 2005, Pitreavie designs, manufactures and
distributes protective packaging, supplying to customers in the
food & drink, energy, electronics and industrial sectors,
primarily in Scotland.
· For the
year ended 31 December 2024, Pitreavie generated sales of £24.8
million, with adjusted
EBITDA of £2.5 million and
adjusted pre-tax profits of £1.3 million.
· Pitreavie employs 159 employees across four locations in
Scotland. Pitreavie operates a corrugate box manufacturing plant,
newly opened in 2020; a specialist protective packaging
manufacturing and assembly facility; a protective packaging
distribution business; and a temperature-controlled packaging
operation, all supported by in-house design capability. The blend
of businesses Pitreavie operates complement both the Distribution
and Manufacturing operations of Macfarlane.
· Pitreavie has an excellent senior management team, that has
been instrumental in driving the growth of the business in recent
years. They will remain with the business post-completion to
support the continued growth of both Macfarlane and
Pitreavie.
· There are significant opportunities for the growth of both
Pitreavie and Macfarlane through their respective industry
expertise, ranges of bespoke protective packaging products and
common supplier base. Pitreavie offers corrugate manufacturing
expertise and capacity to support Macfarlane's Distribution
business in Scotland and the North of England.
· This earnings-enhancing acquisition further demonstrates the
effectiveness of Macfarlane's 'buy and build' strategy in
delivering stakeholder value.
Transaction details
· Macfarlane's wholly-owned subsidiary, Macfarlane Group UK
Limited, has acquired 100% of Pitreavie for a maximum cash
consideration of £18.0 million (including an earn-out of up to £4.0
million based on agreed profit growth targets over two
years).
· A completion adjustment, payable to Macfarlane, is estimated
to be £3.4 million with net debt inherited of £4.0
million.
· The
consideration is being financed entirely from Macfarlane's existing
bank facility. The Group continues to operate well within its
recently-improved banking facility of £40 million and related
covenants, which are committed until November 2027.
Peter Atkinson, Chief Executive of
Macfarlane, said:
"Pitreavie
is a fast-growing, well-invested company with an experienced
management team that is fully committed to the
business. The acquisition represents a
unique and exciting opportunity to grow our business in Scotland
and provide in-house supply to our businesses in the North of
England."
"We look forward to working with the
team at Pitreavie 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:
|
Macfarlane Group
|
Tel: 0141 333 9666
|
|
|
Peter Atkinson
Chief Executive
|
|
|
|
Ivor Gray
Finance Director
|
|
|
|
|
|
|
Spreng Thomson
|
|
|
|
Callum Spreng
|
Mob: 07803 970103
|
Legal Entity Identifier (LEI):
213800LVRYDERSJAAZ73
Notes to
Editors:
· Macfarlane Group PLC has been listed on the Main Market of the
London Stock Exchange plc (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.
