MACFARLANE Group has completed the acquisition of Carters Packaging (Cornwall) Limited.
Macfarlane described Carters as the leading distributor of protective packaging in the south west of England. Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK Limited, has acquired 100% of Carters for a maximum cash consideration of £4.5 million (including an earn-out over two years of £1.5 million).
The expected net assets on completion are £900,000. The consideration will be financed through the group’s recently extended £30 million bank facility. For the year ended 31 March 2020, Carters generated sales of £4.2 million and pre-tax profits of £500,000.
Carters focuses principally on customers within Cornwall and Devon from its 25,000 sq ft facility in Redruth. The business has 25 employees, including two directors, all of whom will remain with the business following the acquisition.
Peter Atkinson, chief executive of Macfarlane, said, “Carters is a well-run, successful protective packaging distributor that meets our strict acquisition criteria and its acquisition will be earnings-enhancing in its first full year in the group. I am confident that the business will prove to be an excellent acquisition improving our geographic penetration and extending our customer reach in the south west of England.”