THE UK’S largest protective packaging distributor has announced the acquisition of German based firm PackMann for a consideration of €8.6m.
The big money move by Macfarlane Group PLC includes an earn-out of €1.75m based on agreed profit growth targets over two years.
Building the business up in northern Europe is a key strategy point for the Glasgow based company, through a combination of organic and acquisitive growth.
The consideration will be financed through the group’s existing £30m bank facility.
Located in Eppelheim near Heidelberg, PackMann has been established for nearly 28 years and supplies customers across Germany and neighbouring countries.
For 2021, the company generated sales of €12.8m, with a pre-tax profit of €0.8m.
The deal includes a recovery for closing adjustments estimated to be €0.6m, including €0.6m of net bank debt.
Founder and director Frank Westermann will be retained following the acquisition, as well as fellow director Volker Thorn.
Macfarlane say that customers of both firms will benefit from the takeover, providing access to their respective ranges of protective packaging products and services.
Peter Atkinson, Chief Executive of 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.”
With over 70 years’ experience in the UK packaging industry, Macfarlane has been listen on the premium segment of the main market of the London Stock Exchange since 1973.
Over 900 people are employed by the group over 36 locations, primarily in the UK, but also in the Republic of Ireland and The Netherlands.
It partners with over 1700 suppliers in order to distribute more than 600,000 lines across a wide range of sectors.
These include retail e-commerce, consumer goods, electronics, defence and food.