Macfarlane sells labels division to Reflex Group
Macfarlane Group, the Scotland-based packaging company, has sold Macfarlane Labels and its subsidiaries in Ireland and Sweden in a deal worth £6.4 million.
The division designs and prints high quality self-adhesive and resealable labels, principally for fast moving consumer goods companies.
Macfarlane Labels is being acquired by The Reflex Group, a privately owned company focused on the manufacture of labels and flexible packaging, with revenues of £135m and more than 800 employees, primarily in the UK.
For the year ended 31 December 2020, Macfarlane Labels generated profit before tax of £300,000, and had gross assets of £15.1m. The business employs 109 employees who will remain after the sale which completed on New Year’s Eve.
The proceeds from the sale will be invested in the growth of Macfarlane’s protective packaging businesses.
Macfarlane chief executive Peter Atkinson said: “Macfarlane Labels has been a long-standing part of the Group. We believe that its sale to Reflex, with their well-established position and scale in the labels market, creates the best opportunity for Macfarlane Labels to develop.
“The sale will allow the Group to focus resources on growing our protective packaging businesses both in the UK and Europe.”