REG - Macfarlane Group PLC - Acquisition of B&D 2010 Group Limited

MacfarlaneAnnouncement

02/10/2023 07:00

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RNS Number : 2585O  Macfarlane Group PLC  02 October 2023

2 October 2023

Macfarlane Group PLC

("Macfarlane Group", "Macfarlane")

Acquisition of specialist protective packaging business B&D

Macfarlane announces the acquisition of B&D 2010 Group Limited
("B&D"), a specialist protective packaging business based in the South of
England.  This earnings enhancing acquisition is in line with Macfarlane's
stated strategy of building its protective packaging business through a
combination of organic and acquisitive growth.

B&D is a well-established business employing 15 staff and supplying
customers in the growing aerospace, defence and space sectors, throughout the
UK and internationally, from its facility in Southampton.  There are
significant opportunities to provide B&D's existing customers with
additional packaging solutions and to also develop new customers in the
sectors within which B&D specialises.

For the year ended 31 December 2022, B&D generated sales of £2.6 million
and an adjusted EBITDA of £0.5 million, with strong growth in 2023
year-to-date.

Macfarlane's wholly-owned subsidiary, Macfarlane Group UK Limited, has
acquired 100% of B&D for a maximum cash consideration of £3.85 million
(including an earn-out of up to £0.55 million based on agreed profit growth
target over one year).

The consideration is being financed entirely from the Group's existing £35.0
million bank facility.

Peter Atkinson, Chief Executive of Macfarlane, said:

"B&D is an excellent business servicing high quality customers in
attractive growth sectors and complements Macfarlane's existing specialist
protective packaging activities.  We look forward to working with the team at
B&D to support its continued growth."

 

 Further enquiries:  Macfarlane Group                                                      Tel: 0141 333 9666
                     Peter Atkinson             Chief Executive
                     Ivor Gray                      Finance Director

                     Spreng Thomson                                                        Tel: 0141 548 5191
                     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 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 who
design and produce protective packaging for high value and fragile products.

·           Headquartered in Glasgow, Scotland, Macfarlane Group
employs over 1,000 people at 37 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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