LONDON: Macfarlane Group announced the acquisition of Carters Packaging (Cornwall) Limited, the owner of Carters Packaging Limited, for a maximum cash consideration of £4.5 million.

Carters is a well-established business, based in Redruth, Cornwall, and is the leading distributor of protective packaging in the South-West of England. The acquisition is in line with Macfarlane’s declared strategy of building its business through a combination of organic and acquisitive growth.

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 £0.9 million. 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 £0.5 million.

Carters focuses principally on customers within Cornwall and Devon from its 25,000 sq. ft. facility in Redruth and will benefit from access to Macfarlane’s extended range of protective packaging products and services. The business has an experienced team of 25 employees, including its 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.”

Macfarlane Group PLC has been listed on the Premium segment of the Main Market of the London Stock Exchange (LSE: MACF) since 1973 with over 70 years’ experience in the UK packaging industry.