Macfarlane Group has acquired A & G Holdings, owner of Gottlieb Packaging Materials, for £3.55m.
This deal is part of a strategy to build its protective packaging business through a combination of organic and acquisitive growth.
Gottlieb is a well-established business based in the north west of England, supplying protective packaging products to customers across a range of sectors, from its warehouse facilities in Manchester.
Gottlieb has a team of 15 employees, including two directors, all of whom will remain with the business following the acquisition.
A statement suggested that this earnings accretive acquisition demonstrates Macfarlane’s ‘buy and build’ strategy.
The cash consideration of £3.55m includes an earn-out of up to £800,000 based on agreed profit growth targets over two years.
A further adjustment is due for net assets in excess of £300,000 with the expected net assets on completion being £1m, including £800,000 of net cash.
The consideration is being financed entirely from Macfarlane’s existing £30m bank facility.
For the year ended 31 December 2022, Gottlieb generated sales of £4.5m, with earnings before tax and pre-tax profits of £700,000.
Peter Atkinson, chief executive of Macfarlane, said: “This acquisition of Gottlieb complements the recent opening of our new distribution facility in Heywood and further strengthens our ability to serve customers in the north west of England.
“We look forward to working with the team at Gottlieb to support its continued growth.”
Headquartered in Glasgow, Macfarlane Group employs more than 1,000 people at 37 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands.
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