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1 Apr 2021 07:00
1 April 2021
Macfarlane Group Announces Acquisition of Carters Packaging in Cornwall
Macfarlane Group PLC ("Macfarlane") is pleased to announce the acquisition of Carters Packaging (Cornwall) Limited, the owner of Carters Packaging Limited ("Carters").
Carters is a well-established business, based in Redruth, Cornwall, and is the leading distributor of protective packaging in the South-West of England. The acquisition is in line with Macfarlane's declared strategy of building its business through a combination of organic and acquisitive growth.
Macfarlane's wholly-owned subsidiary, Macfarlane Group UK Limited, has acquired 100% of Carters for a maximum cash consideration of £4.5 million (including an earn-out over two years of £1.5 million). The expected net assets on completion are £0.9 million. The consideration will be financed through the Group's recently extended £30 million bank facility. For the year ended 31 March 2020, Carters generated sales of £4.2 million and pre-tax profits of £0.5 million.
Carters focuses principally on customers within Cornwall and Devon from its 25,000 sq. ft. facility in Redruth and will benefit from access to Macfarlane's extended range of protective packaging products and services. The business has an experienced team of 25 employees, including its two Directors, all of whom will remain with the business following the acquisition.
Peter Atkinson, Chief Executive of Macfarlane, said:
"Carters is a well-run, successful protective packaging distributor that meets our strict acquisition criteria and its acquisition will be earnings-enhancing in its first full year in the Group. I am confident that the business will prove to be an excellent acquisition improving our geographic penetration and extending our customer reach in the South West of England."
Further enquiries: | Macfarlane Group | Tel: 0141 333 9666 |
| Stuart Paterson Chairman |
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| Peter Atkinson Chief Executive |
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| Ivor Gray Finance Director |
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| Spreng Thomson |
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| 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 and labels 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 Labels who design and print high quality self-adhesive and resealable labels, principally for FMCG companies, and Macfarlane Design and Manufacture who design and produce protective packaging for high value and fragile products.
· Headquartered in Glasgow, Scotland, Macfarlane Group employs over 950 people at 33 sites, principally in the UK, as well as in Ireland, Sweden and the Netherlands.
· Macfarlane Group supplies more than 20,000 customers in the UK, Europe and the USA.
· 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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