Glasgow-based Macfarlane Group has acquired Wiltshire-based protective packaging manufacturer GWP Holdings for £15.1m.
The deal includes an earn-out of £5.1m based on agreed profit growth targets over the next two years and a further adjustment for net assets in excess of £1.6m - with the expected net assets on completion being £4.3m, including £3.8m of net cash.
The consideration will be financed through the group’s recently extended £30m bank facility.
For the year ended 30 September, GWP generated sales of £13.2m with earnings before interest at £2.1m and pre-tax profits of £1.6m.
Peter Atkinson, chief executive of Macfarlane, said: “GWP is a profitable, growing, well invested company with an experienced management team that is fully committed to the business going forward.
“We look forward to working with the team at GWP to support its continued growth and develop opportunities for us to work together to provide all our customers with a broader portfolio of value-add and sustainable protective packaging solutions.”
The board is proposing a final dividend share of 1.85p per share equivalent to a full-year payout of 2.55p.
Macfarlane Group employs more than 850 people at 31 sites, principally in the UK, as well as in Ireland, Sweden and the Netherlands.
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