MACFARLANE Group has completed the acquisition of protective packaging specialist Allpack Packaging Supplies.
East Anglia-based Allpack supples products to customers across a range of sectors from its warehouse facilities near Bury St Edmunds. The company has 10 employees, including three directors, all of whom Macfarlane revealed will remain with the business following the acquisition.
For the year ended 31 December 2023, Allpack generated sales of £3 million, with EBITDA and pre-tax profits of £600,000.
Macfarlane has acquired 100% of Allpack for a maximum cash consideration of £3.25 million, including an earn-out of up to £750,000 based on agreed profit growth targets over one year. A further adjustment is due for net assets in excess of £400,000 with the expected net assets on completion being £2.2 million, including £1.9 million of net cash.
The consideration is being financed entirely from Macfarlane’s existing bank facility.
Peter Atkinson, chief executive of Macfarlane, said, “This latest transaction follows three acquisitions undertaken in the prior 12 months, and clearly demonstrates further progress in executing against our buy and build strategy. Allpack is a well-run, successful protective packaging distributor with an experienced management team.
“The addition of Allpack to the Macfarlane Group further strengthens our ability to serve customers in East Anglia. We look forward to working with the team at Allpack to support its continued growth.”
