UK – Glasgow-based protective packaging provider Macfarlane Group has completed the acquisition of Suttons Performance Packaging for a maximum cash consideration of £9.0 million (US$10.75m).
Based in Cambridgeshire, UK, Suttons develops specialist protective packaging for customers in the medical, electronics and industrial sectors in the UK from its manufacturing facilities in Chatteris.
The acquisition aligns with Macfarlane’s strategy to develop its protective packaging business through a combination of organic and acquisitive growth.
The deal is also expected to help both parties by accessing each other’s industry expertise, ranges of bespoke protective packaging products and common supplier base.
Under the terms of the acquisition, two directors from Suttons’ team of 55 employees will remain with the Group upon completion of the deal.
Macfarlane CEO Peter Atkinson said: “Suttons is a profitable, well-invested company with an experienced management team that is fully committed to the business going forward. The acquisition is being funded using our existing bank facility and will be earnings-enhancing.
“We look forward to working with the team at Suttons to support its continued growth and develop opportunities for us to work together to provide all our customers with a broader portfolio of protective packaging solutions.”
The £9 million (US$ 10.79m) cash consideration includes an earn-out of up to £2.5 million (US$ 3.00m) based on agreed profit growth targets over two years.
Macfarlane said that the earnings accretive acquisition shows its buy-and-build strategy to deliver further stakeholder value.
The company serves a broad range of business customers and supplies them with protective packaging to lower the supply chain costs, and enhance operational efficiencies and brand presentation.
It distributes and produces more than 600,000 lines across a range of sectors, including retail e-commerce; consumer goods; food; logistics; mail order; electronics; defence, automotive and aerospace.
In May last year, Macfarlane Group snapped up German protective packaging distributor PackMann Gesellschaft für Verpackungen und Dienstleistungen (PackMann) for €8.6 million.
Based near Heidelberg, PackMann supplies protective packaging to customers across Germany and neighboring countries.
The company has 112 employees, including its founder and director Frank Westermann and director Volker Thorn.
The acquisition is in line with Macfarlane’s strategy to strengthen its protective packaging business in Northern Europe by integrating organic and acquisitive growth.
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