Scottish packaging group Macfarlane has acquired an English business in a deal worth up to £3.25 million, its second takeover deal this year.
The Glasgow-based group has bought the Leyland Packaging Company which focuses on industrial customers in the north west of England.
The deal follows May’s acquisition of Buckinghamshire-based Ecopac for up to £3.9 million.
Under the latest deal, Macfarlane will pay an initial consideration of £2.25 million made up of £2 million in cash and the remainder in shares. It will also pay up a further £1 million in cash at the end of next year depending on trading.
In the year ended 31 December 2018, Leyland generated sales of £4.06 million and pre-tax profits of £550,000.
Macfarlane said the business will benefit from access to Macfarlane's extended range of protective packaging products and services and the significant overlap of suppliers. The business has a team of 12 employees all of whom will remain in the business following the acquisition.
Macfarlane’s chief executive Peter Atkinson said: "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. I am confident that the business will be another good acquisition for Macfarlane improving our geographic coverage in the north west and extending our customer reach."
Last month, Macfarlane announced turnover for the six months to 30 June rose by 5.4% to £105.5 million while profit before tax was up 8.7% to £3.8 million. Macfarlane employs over 925 people at 30 sites, principally in the UK, but also in Ireland and Sweden.
