REG - Macfarlane Group PLC - Disposal

MacfarlaneAnnouncement

04/01/2022 07:00

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RNS Number : 2481X  Macfarlane Group PLC  04 January 2022

 

4 January 2022

Macfarlane Group PLC

Sale of Labels Division

Macfarlane Group PLC ("Macfarlane", "the Group") announces the sale of
Macfarlane Labels Limited and its subsidiaries, Macfarlane Group Ireland
(Labels & Packaging) Limited and Macfarlane Group Sweden AB (collectively
"Macfarlane Labels") which was completed on 31 December 2021.  Macfarlane
Labels designs and prints high quality self-adhesive and resealable labels,
principally for FMCG companies.

Macfarlane Labels is being acquired by The Reflex Group Limited ("Reflex"), a
well-established, privately owned company, focused on the manufacture of
labels and flexible packaging, with revenues of £135m and over 800 employees,
primarily in the United Kingdom.

The consideration for Macfarlane Labels is £6.4m, which will broadly align
with net asset value. 95% of the consideration was paid on completion with the
balance payable within three months of completion, subject to any adjustment
following finalisation and agreement of the net asset value of Macfarlane
Labels at the completion date.  The Group's net bank debt at 30 November 2021
was £3.2m (30 June 2021: £8.7m).  The Group's bank facility of £30m is in
place until December 2025.

For the year ended 31 December 2020, Macfarlane Labels generated profit before
tax of £0.3m*, and as at 31 December 2020 had gross assets of £15.1m.
Macfarlane Labels employs 109 employees who will remain in the business after
the sale.

The proceeds from the sale will be strategically invested in the continuing
growth of Macfarlane's protective packaging businesses.

Peter Atkinson, Chief Executive of Macfarlane, said:

"Macfarlane Labels has been a long-standing part of the Group. We believe that
its sale to Reflex, with their well-established position and scale in the
labels market, creates the best opportunity for Macfarlane Labels to develop.

The sale will allow the Group to focus resources on growing our protective
packaging businesses both in the UK and Europe."

*£0.6m after adding back Group management and interest charges.

 Further enquiries:  Macfarlane Group                                                    Tel: 0141 333 9666
                     Stuart Paterson            Chairman
                     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 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.

 

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