Macfarlane Group acquires Pitreavie Group for £18 million

LONDON: Macfarlane Group PLC has announced the acquisition of The Pitreavie Group Limited for a maximum cash consideration of £18.0 million. This deal includes an earn-out of up to £4.0 million over two years, reflecting Macfarlane’s strategy to enhance its protective packaging business through both organic and acquisitive growth.

Pitreavie, founded in 2005, specializes in designing, manufacturing, and distributing protective packaging. The company serves customers in the food and drink, energy, electronics, and industrial sectors, primarily in Scotland.

In the year ended December 31, 2024, Pitreavie reported sales of £24.8 million, with an adjusted EBITDA of £2.5 million and adjusted pre-tax profits of £1.3 million. The company employs 159 people across four locations in Scotland.

Pitreavie operates a corrugate box manufacturing plant opened in 2020, a specialist protective packaging manufacturing and assembly facility, a protective packaging distribution business, and a temperature-controlled packaging operation, supported by in-house design capability. These businesses complement Macfarlane’s Distribution and Manufacturing operations.

Pitreavie’s senior management team, which has driven the company’s growth in recent years, will remain with the business post-completion. The acquisition presents opportunities for growth through shared industry expertise, bespoke protective packaging products, and a common supplier base.

Macfarlane Group UK Limited, a wholly-owned subsidiary of Macfarlane Group PLC, has acquired 100% of Pitreavie for £18.0 million. The deal includes an earn-out of up to £4.0 million based on agreed profit growth targets over two years. A completion adjustment payable to Macfarlane is estimated at £3.4 million, with inherited net debt of £4.0 million. The acquisition is financed entirely from Macfarlane’s existing bank facility, which remains well within its £40 million banking facility and related covenants committed until November 2027.

Peter Atkinson, Chief Executive of Macfarlane, stated, “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.”

Atkinson added, “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.”