Macfarlane acquires German distributor PackMann
Packaging company Macfarlane Group has made its first acquisition outside the UK in recent years, paying up to €8.625 million (£7.28m) for German distribution company PackMann.
The acquisition is in line with Macfarlane’s strategy of building its protective packaging business in Northern Europe through a combination of organic and acquisitive growth and is immediately earnings enhancing.
Glasgow-based Macfarlane has acquired 100% of PackMann and the total cash consideration includes an earn-out of €1.75m based on agreed profit growth targets over two years.
The deal will be financed through the group’s existing £30m bank facility. For the year ended 31 December 2021, PackMann generated sales of €12.8 million, EBITDA of €0.9 million and pre-tax profits of €0.8 million.
PackMann, based in Eppelheim near Heidelberg, has been established for nearly 28 years and supplies customers across Germany and neighbouring countries.
It has 112 employees, including its founder and director Frank Westermann and director Volker Thorn, both of whom will remain with the company following its acquisition.
Peter Atkinson, chief executive of Macfarlane, said: “PackMann is Macfarlane’s first acquisition outside the UK in recent years and I am delighted that we have secured this excellent business with its strong history of profitability and an experienced management team.
“This transaction strengthens our “Follow the Customer” strategy, giving us a solid platform from which to accelerate the growth of our protective packaging business in Northern Europe.”