MACFARLANE Group has completed the acquisition of A & G Holdings Limited, owner of Gottlieb Packaging Materials.
Gottlieb is based in the north west of England and supplies protective packaging products to customers across a range of sectors from its warehouse facilities in Manchester.
The company has 15 employees, including two directors, all of whom will remain with the business following the acquisition. For the year ended 31 December 2022, Gottlieb generated sales of £4.5 million, with EBITDA and pre-tax profits of £700,000.
Macfarlane said the acquisition further progresses its strategy of building its protective packaging business through a combination of both organic and acquisitive growth.
Macfarlane Group UK has acquired 100% of Gottlieb for a maximum cash consideration of £3.55 million, including an earn-out of up to £800,000 million based on agreed profit growth targets over two years. A further adjustment is due for net assets in excess of £300,00 with the expected net assets on completion being £1 million, including £800,000 of net cash.
The consideration is being financed entirely from Macfarlane’s existing £30 million bank facility.
Peter Atkinson, chief executive of Macfarlane, said, “Gottlieb is a well-run, successful protective packaging distributor with an experienced management team. The 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.”
