Macfarlane adds Suttons to boost specialist unit
Macfarlane Group has acquired A.E. Sutton, trading as Suttons Performance Packaging, a specialist protective packaging manufacturing business based in Cambridgeshire in a £9 million deal.
The earnings enhancing acquisition is in line with Glasgow-based Macfarlane’s declared strategy of building its protective packaging business through a combination of organic and acquisitive growth.
Suttons, established in 1962, supplies customers in the medical, electronics and industrial sectors, throughout England, from its manufacturing facilities in Chatteris. It has 55 employees, including its two directors who will both remain with the group following the acquisition.
The cash deal includes an earn-out of up to £2.5m based on agreed profit growth targets over two years and is financed entirely from Macfarlane’s existing £30m bank facility.
For the year ended 31 March 2022, Suttons generated sales of £7.4m, EBITDA of £1.1m and pre-tax profits of £0.9m.
Peter Atkinson, chief executive of Macfarlane, said: “Suttons is a profitable, well invested company with an experienced management team that is fully committed to the business going forward.”