LONDON (Alliance News) - Packaging firm Macfarlane Group PLC said Tuesday it has acquired Ecopac (UK) Ltd for up to GBP3.9 million in cash.
Macfarlane will pay an initial GBP3.1 million in cash for the Buckinghamshire-based business, with the remaining up to GBP800,000 payable as an earn-out consideration.
For the year ended March 2018, Ecopac generated GBP500,000 pretax profit on revenue of GBP6.0 million. For comparison, Macfarlane generated GBP10.9 million pretax profit in calendar 2018 on revenue of GBP217.3 million.
"Ecopac is a well-run, profitable packaging business that meets our strict acquisition criteria and will be earnings-enhancing in its first full year in the group", Macfarlane Chief Executive Officer Peter Atkinson said. "I am confident that the business will prove to be an excellent acquisition improving our geographic penetration and extending our customer reach."
Shares in Macfarlane were 4.6% higher at 106.48 pence on Tuesday.