LONDON, UK: Macfarlane Group announced the acquisition of PackMann Gesellschaft für Verpackungen und Dienstleistungen mbH (PackMann), a protective packaging distribution business based in Eppelheim near Heidelberg, Germany.
The acquisition is in line with Macfarlane’s strategy of building its protective packaging business in Northern Europe through a combination of organic and acquisitive growth and is immediately earnings enhancing.
Macfarlane has acquired 100% of PackMann for a maximum cash consideration of €8.625 million (including an earn-out of €1.75 million based on agreed profit growth targets over two years) and a recovery for closing adjustments estimated to be €0.6 million, including €0.6 million of net bank debt.
The consideration will be financed through the Group’s existing £30 million bank facility. For the year ended 31 December 2021, PackMann generated sales of €12.8 million, EBITDA of €0.9 million and pre-tax profits of €0.8 million.
PackMann has been established for nearly 28 years and supplies customers across Germany and neighbouring countries. The business has an experienced team of 112 employees, including its founder and director Frank Westermann and director Volker Thorn, both of whom will remain with the company following its acquisition. There are significant opportunities for customers of both PackMann and Macfarlane to benefit from access to their respective ranges of protective packaging products and services.
Peter Atkinson, Chief Executive of Macfarlane, said: “PackMann is Macfarlane’s first acquisition outside the UK in recent years and I am delighted that we have secured this excellent business with its strong history of profitability and an experienced management team. This transaction strengthens our “Follow the Customer” strategy, giving us a solid platform from which to accelerate the growth of our protective packaging business in Northern Europe.”
Macfarlane Group 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.