Glasgow packaging group Macfarlane seals fresh multi-million-pound acquisition

Macfarlane Group, the Glasgow-headquartered packaging provider, has bolstered its 1,000-strong workforce with a multi-million-pound acquisition south of the Border.

Headquartered in Glasgow, Macfarlane Group employs more than 1,000 people at 37 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands.

The long-standing business, which supplies more than 20,000 customers across the UK and Europe, said it was paying £3.85 million to take control of B&D 2010 Group, a specialist protective packaging firm that operates out of Southampton. Macfarlane bosses, who had hinted at a further bolt-on deal in August, said there were “significant opportunities” to provide B&D’s existing customers with additional packaging services and to also develop new customers in the sectors within which the English firm specialises.

B&D is described as a “well-established business” employing 15 staff and supplying customers in the growing aerospace, defence and space sectors, throughout the UK and internationally. For the year ended 31 December 2022, the firm generated sales of £2.6m and an adjusted underlying profit of £500,000, with “strong growth” in 2023 to date.

Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK, has acquired 100 per cent of B&D for a maximum cash consideration of £3.85m, including an earn-out of up to £550,000 based on an agreed profit growth target over one year. The deal is being financed entirely from the Scottish group’s existing £35m bank facility.

Chief executive Peter Atkinson said: “B&D is an excellent business servicing high quality customers in attractive growth sectors and complements Macfarlane’s existing specialist protective packaging activities. We look forward to working with the team at B&D to support its continued growth.”

Analysts at house brokerage Shore Capital noted: “B&D is a good strategic and complementary fit within Macfarlane’s manufacturing operations - in line with its key ‘buy and build’ growth strategy. We see significant synergistic opportunities for Macfarlane to cross sell to B&D’s existing customers, as well as developing new customers across B&D’s specialist sectors.”

In August, Macfarlane said it remained on track to hit annual profit forecasts in excess of £20m despite warning of a “challenging” second half. Unveiling a double-digit hike in first-half profits, the firm also noted that its recent acquisitions were performing well, while it continued to make good progress in Europe. Atkinson said at the time: “We have a strong acquisition pipeline and we would be very hopeful that we can complete another acquisition before the year end.”