Macfarlane Group PLC has announced the acquisition of A & G Holdings Limited, which owns Gottlieb Packaging Materials Limited, as part of its strategy to build its protective packaging business through a combination of organic and acquisitive growth.
Gottlieb, based in Manchester, is an established business that supplies protective packaging products to customers across various sectors.
The company has a team of 15 employees, including two directors, who will remain with the business following the acquisition. The acquisition will provide opportunities for Gottlieb’s customers to benefit from Macfarlane’s extensive range of protective packaging products and services.
The acquisition, which is being financed entirely from Macfarlane’s existing £30.0 million bank facility, has a maximum cash consideration of £3.55 million, including an earn-out of up to £0.8 million based on agreed profit growth targets over two years.
A further adjustment of net assets in excess of £0.3 million is due, with expected net assets of £1.0 million, including £0.8 million of net cash on completion.
For the year ended December 31, 2022, Gottlieb generated sales of £4.5 million, with EBITDA and pre-tax profits of £0.7 million. The acquisition is expected to be earnings accretive and demonstrate Macfarlane’s “buy and build” strategy in delivering further stakeholder value.
Peter Atkinson, Chief Executive of Macfarlane, expressed his excitement about the acquisition, stating that Gottlieb is a well-run, successful protective packaging distributor with an experienced management team.
The acquisition of Gottlieb complements the recent opening of Macfarlane’s new distribution facility in Heywood and further strengthens its ability to serve customers in the North-West of England.