A Scottish packaging group has bought an English rival for £4.5m as part of its “acquisitive growth” strategy.
Glasgow-based Macfarlane Group has acquired 100% of Carters Packaging, based in Redruth, Cornwall, with a £1.5m earn-out clause over two years.
The company expects that the net assets on completion will be £900,000 and the consideration will be financed through the group’s recently extended £30m banking facility.
For the year ended 31 March 2020, Carters generated sales of £4.2m and pre-tax profits of £500,000.
Carters focuses on customers within Cornwall and Devon from its 25,000 sq ft facility in Redruth.
The business has a 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.”
Exactly a month ago, Macfarlane acquired Wiltshire-based protective packaging manufacturer GWP Holdings for £15m.
This followed the deal last January for Teeside-based Armagrip, also as part of its expansion strategy.
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