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LONDON (Alliance News) - Macfarlane Group PLC Wednesday said it has reached an agreement to acquire One Packaging Ltd for a consideration of up to GBP2.75 million.
The London-listed packaging and label company will pay an initial consideration of GBP2 million in cash, funding from its existing borrowing facilities. A deferred consideration of up to GBP0.75 million will become payable in the third quarter of 2016, subject to certain trading targets being met in the twelve month period following acquisition.
Half the deferred consideration will be paid in cash and half will be paid in ordinary shares in Macfarlane.
One Packaging, based in Nottingham, supplies packaging materials and solutions to UK-based businesses. The company's main product line includes, bags, pallet wrap, food grade papers, tape and shelf-ready packaging.
"One is a good quality, successful packaging distributor. This acquisition demonstrates our continuing commitment to the strategy of developing our leadership position in the UK market for the distribution of protective packaging," said Chief Executive Peter Atkinson.
By Preten Patel; pretenpatel@alliancenews.com
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