REG - Macfarlane Group PLC - Acquisition

MacfarlaneAnnouncement

02/05/2023 07:00

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RNS Number : 9668X  Macfarlane Group PLC  02 May 2023

 

2 May 2023

Macfarlane Group PLC

Acquisition of protective packaging distributor Gottlieb

Macfarlane Group PLC ("Macfarlane") is pleased to announce the acquisition of
A & G Holdings Limited, owner of Gottlieb Packaging Materials Limited
("Gottlieb").  This earnings enhancing acquisition further progresses
Macfarlane's strategy of building its protective packaging business through a
combination of organic and acquisitive growth.

Strategic highlights

 * Gottlieb is a well-established business based in the North-West of England,
supplying protective packaging products to customers across a wide range of
sectors, from its warehouse facilities in Manchester.

 * Gottlieb has an experienced team of 15 employees, including two Directors, all
of whom will remain with the business following the acquisition.

 * There are opportunities for Gottlieb'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 Gottlieb for a maximum cash consideration of £3.55 million
(including an earn-out of up to £0.8 million based on agreed profit growth
targets over two years)

 * A further adjustment is due for net assets in excess of £0.3 million with the
expected net assets on completion being £1.0 million, including £0.8 million
of net cash.

 * The consideration is being financed entirely from Macfarlane's existing £30.0
million bank facility.

 * For the year ended 31 December 2022, Gottlieb generated sales of £4.5
million, with EBITDA and pre-tax profits of £0.7 million.

Peter Atkinson, Chief Executive of Macfarlane, said:

"Gottlieb is a well-run, successful protective packaging distributor with an
experienced management team.  The acquisition of Gottlieb complements the
recent opening of our new distribution facility in Heywood and further
strengthens our ability to serve customers in the North-West of England.  We
look forward to working with the team at Gottlieb 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:

* Packaging Distribution - Macfarlane Packaging Distribution is the leading UK
distributor of a comprehensive range of protective packaging products; and

 * 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 across a wide range of sectors, including: retail
e-commerce; consumer goods; food; logistics; mail order; electronics; defence,
automotive and aerospace.

 

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