(Alliance News) - Packaging firm Macfarlane Group PLC said Monday it has acquired Leyland Packaging Co Ltd for up to GBP3.3 million in a cash and share deal.
Macfarlane will pay an initial GBP2.0 million in cash with a further GBP225,000 paid through the issue of 264,382 shares in Macfarlane.
A final GBP1.0 million earn-out payment will be due in the fourth quarter of 2020 should earnings before interest, taxes, depreciation & amortisation targets be met.
In 2018, Leyland generated GBP550,000 in pretax profit on revenue of GBP4.1 million. Over the same period, Macfarlane generated GBP10.9 million in pretax profit on revenue of GBP217.3 million.
"Leyland is a high-quality packaging business that meets our acquisition criteria and will be earnings enhancing in its first full year in the group," Macfarlane Chief Executive Peter Atkinson said.
"I am confident the business will be another good acquisition for Macfarlane improving our geographic coverage in the north-west and extending our customer reach."
Shares in Macfarlane were 1.0% higher at 95.90 pence in London on Monday.
Macfarlane Grp. (MACF)