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Deal for Midlands firm

Macfarlane adds Nelsons to packaging business

Peter AtkinsonPackaging firm Macfarlane has acquired a company in the Midlands in a further move to develop its distribution business.

It is paying £6.75 million for Leicester-based Nelsons for Cartons and Packaging which will be part-financed via a placing of shares to raise £5.8m.

Nelsons has little customer overlap with Macfarlane and will provide access to new customers, as well as increasing the company’s shelf-ready packaging product range.

Nelsons is a profitable and cash generating business achieving annual revenues of £7.9 million, EBITDA of about £900,000 and an operating profit of approximately £800,000.

Gary Mason, managing director, and Mark Bassford, sales director, will be retained.

The placing with be arranged by Arden Partners and will involve the allocation of 10m new shares at a price not less than 58p per share with new and existing shareholders.

At the lowest price of 58p this represents a discount of approximately 4.1% to the closing price on 25 July. 

Macfarlane’s chief executive, Peter Atkinson (pictured), said:  “The addition of Nelsons Packaging to the Macfarlane Group is another significant step forward in our growth strategy.

“Nelsons is a high quality business and in addition to improving the Macfarlane presence in the East Midlands, the Nelson team bring specific expertise in corrugate packaging applications which will be of wider benefit to Macfarlane.”

Lord Macfarlane, who established the company, has retired from the House of Lords

 

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