MACFARLANE Group has completed the acquisition of Scottish protective packaging specialist The Pitreavie Group for a maximum cash consideration of £18 million, including an earn-out of up to £4 million over two years.
Founded in 2005, Pitreavie designs, manufactures and distributes protective packaging, supplying to customers in the food & drink, energy, electronics and industrial sectors, primarily in Scotland.
For the year ended 31 December 2024, Pitreavie generated sales of £24.8 million, with adjusted EBITDA of £2.5 million and adjusted pre-tax profits of £1.3 million. The firm employs 159 people across four locations in Glenrothes, Aberdeen, and two sites in Cumbernauld.
Pitreavie operates a corrugate box manufacturing plant; a protective packaging manufacturing and assembly facility; a protective packaging distribution business; and a temperature-controlled packaging operation, all supported by in-house design capability.
Macfarlane said the Pitreavie senior management team will remain with the business post-completion to support the continued growth of both Macfarlane and Pitreavie.
The move is being financed entirely from Macfarlane’s existing bank facility.
Peter Atkinson, chief executive of Macfarlane, said, “Pitreavie is a fast-growing, well-invested company with an experienced management team that is fully committed to the business. The acquisition represents a unique and exciting opportunity to grow our business in Scotland and provide in-house supply to our businesses in the North of England. We look forward to working with the team at Pitreavie to support its continued growth and develop opportunities for us to work together to provide our customers with a broader portfolio of protective packaging solutions.”
Stephen Heslop, MD of The Pitreavie Group, commented, “This is an exciting next chapter for the Pitreavie business and, together with my senior management team, I look forward to working with the team at Macfarlane Group to ensure a seamless transition. The future looks extremely bright for our staff as part of an enlarged organisation of considerable strength and scale.”
Pitreavie has been owned, invested in and expanded by Joe Diamond and Gordon Delaney since 2005. Joe Diamond said, “We are immensely proud of all we have achieved under the Pitreavie banner. We knew that the sale of the company had to be to a business with the same expertise, ambition and deep respect for the industry.”
Gordon Delaney added, “Macfarlane Group is a perfect fit with obvious synergies and we are excited that our employees and customers will have access to such a broad range of packaging solutions going forward. We especially want to thank Stephen Heslop and all of our valued employees, across our four sites, for their work in helping drive the growth story under our ownership. We wish the new venture every success for the future.”
