Macfarlane Group has acquired a German protective packaging distributor for €8.6m.
The Glasgow-headquartered packaging firm bought PackMann Gesellschaft für Verpackungen und Dienstleistungen, which is based in Eppelheim, as part of its growth strategy.
The deal should be immediately earnings enhancing and includes an earn-out of €1.75m, based on agreed profit growth targets over two years and a recovery for closing adjustments estimated to be €600,000 - including €600,000 of net bank debt.
It will be financed through the group’s existing £30m bank facility.
For the year ended 31 December 2021, PackMann generated sales of €12.8m, with earnings before tax of €900,000 and pre-tax profits of €800,000.
PackMann has been established for nearly 28 years and supplies customers across Germany and neighbouring countries.
The business has a team of 112 employees, including its founder and director Frank Westermann and director Volker Thorn; both of whom will remain with the company following its acquisition.
Peter Atkinson, chief executive at Macfarlane, said: “PackMann is Macfarlane’s first acquisition outside the UK in recent years and I am delighted that we have secured this excellent business with its strong history of profitability and an experienced management team.
“This transaction strengthens our 'follow the customer' strategy, giving us a solid platform from which to accelerate the growth of our protective packaging business in Northern Europe.”
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