REG - Macfarlane Group PLC - Acquisition of Allpack Packaging Supplies Limited

MacfarlaneAnnouncement

13/03/2024 07:00

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RNS Number : 5804G  Macfarlane Group PLC  13 March 2024

 

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:  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 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.

 

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