Business
Acquisition of Allpack Packaging Supplies Limited
Acquisition of Allpack Packaging Supplies Limited.
About this update from Macfarlane Group Plc
[{"type":"text","content":"\n\n \n13 March 2024\nMacfarlane Group PLC\n(\"Macfarlane\", the \"Company\" or the \"Group\")\nEarnings accretive acquisition of protective packaging distributor, Allpack\nMacfarlane Group PLC is pleased to announce the acquisition of Allpack Packaging Supplies Limited (\"Allpack\"). This earnings-enhancing acquisition further progresses Macfarlane's strategy to build its protective packaging business through a combination of organic and acquisitive growth.\nStrategic highlights\n\n· A well-established business based in East Anglia, supplying protective packaging products to customers across a wide range of sectors, from its warehouse facilities near Bury St Edmunds.\n· Allpack has an experienced team of 10 employees, including three Directors, all of whom will remain with the business following the acquisition.\n· There are opportunities for Allpack's customers to benefit from access to Macfarlane's extensive range of protective packaging products and services.\n· This earnings-accretive acquisition continues to demonstrate Macfarlane's 'buy and build' strategy in delivering further stakeholder value.\n\nTransaction details\n\n· Macfarlane's wholly-owned subsidiary, Macfarlane Group UK Limited, has acquired 100% of Allpack for a maximum cash consideration of £3.25 million (including an earn-out of up to £0.75 million based on agreed profit growth targets over one year).\n· A further adjustment is due for net assets in excess of £0.4 million with the expected net assets on completion being £2.2 million, including £1.9 million of net cash.\n· The consideration is being financed entirely from Macfarlane's existing bank facility.\n· For the year ended 31 December 2023, Allpack generated sales of £3.0 million, with EBITDA and pre-tax profits of £0.6 million.\n\nPeter Atkinson, Chief Executive of Macfarlane, said:\n\"This latest transaction follows three acquisitions undertaken in the prior 12 months, and clearly demonstrates further progress in executing against our buy and build strategy. Allpack is a well-run, su...