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LONDON (Alliance News) - Macfarlane Group PLC Monday said it had agreed a deal to buy Network Packaging Ltd and said it would raise GBP3 million via a conditional share placing.
The packaging and labelling company said it has agreed a deal to buy the entire issued share capital of Network Packaging for a maximum consideration of GBP7.5 million. The deal will see Macfarlane pay an initial GBP4.9 million, with GBP4.3 million in cash and GBP0.6 million in shares.
Macfarlane said Network Packaging made an operating profit of GBP0.8 million for the year to December 31, 2013 on revenue of GBP7.8 million.
In addition, MacFarlane said it has raised GBP3 million before expenses via a conditional placing of 8 million shares in the company at 37.5 pence each. Macfarlane said the acquisition of Network Packaging was not dependent on the placing.
Macfarlane shares were down 0.3% to 39.65 pence in early trade on Monday.
"The board is very pleased with the high level of support being shown for its strategy by both new and existing institutional shareholders," said Peter Atkinson, the Chief Executive of Macfarlane.
"Network Packaging is a successful company, and today's acquisition demonstrates our continuing commitment to the strategy of developing our UK Packaging Distribution business," Atkinson added.
Late last month, Macfarlane reported flat pretax profit for its first-half and left its dividend unchanged, but said it was confident in meeting its full-year expectations.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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