REG - Macfarlane Group PLC - Acquisition

MacfarlaneAnnouncement

17/05/2022 12:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220517:nRSQ7970La&default-theme=true

RNS Number : 7970L  Macfarlane Group PLC  17 May 2022

 

17 May 2022

Macfarlane Group PLC

Strategic acquisition of PackMann in Germany

Expanding Macfarlane's protective packaging capability in Northern Europe

Macfarlane Group PLC ("Macfarlane") is pleased to announce the acquisition of
PackMann Gesellschaft für Verpackungen und Dienstleistungen mbH ("PackMann"),
a protective packaging distribution business based in Eppelheim near
Heidelberg, Germany. The acquisition is in line with Macfarlane's strategy of
building its protective packaging business in Northern Europe through a
combination of organic and acquisitive growth and is immediately earnings
enhancing.

Macfarlane has acquired 100% of PackMann for a maximum cash consideration of
€8.625 million (including an earn-out of €1.75 million based on agreed
profit growth targets over two years) and a recovery for closing adjustments
estimated to be €0.6 million, including €0.6 million of net bank debt.
The consideration will be financed through the Group's existing £30 million
bank facility. For the year ended 31 December 2021, PackMann generated sales
of €12.8 million, EBITDA of €0.9 million and pre-tax profits of €0.8
million.

PackMann has been established for nearly 28 years and supplies customers
across Germany and neighbouring countries.  The business has an experienced
team of 112 employees, including its founder and director Frank Westermann and
director Volker Thorn, both of whom will remain with the company following its
acquisition. There are significant opportunities for customers of both
PackMann and Macfarlane to benefit from access to their respective ranges of
protective packaging products and services.

Peter Atkinson, Chief Executive of Macfarlane, said:

"PackMann is Macfarlane's first acquisition outside the UK in recent years and
I am delighted that we have secured this excellent business with its strong
history of profitability and an experienced management team. This transaction
strengthens our "Follow the Customer" strategy, giving us a solid platform
from which to accelerate the growth of our protective packaging business in
Northern Europe."

 Further enquiries:  Macfarlane Group                                                     Tel: 0141 333 9666
                     Stuart Paterson                 Chairman
                     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 high quality protective packaging which
help customers reduce supply chain costs, improve their 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 900
people at 36 sites, principally in the UK, as well as in Ireland 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 across a wide range of sectors, including: retail
e-commerce; consumer goods; food; logistics; mail order; electronics; defence,
automotive and aerospace.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQUBORRUKUVAAR