Macfarlane snaps up specialist south east firm
Packaging company Macfarlane has acquired B&D 2010 Group, a specialist protective packaging business based in the South of England, in a near-£4m deal.
The acquisition is in line with Macfarlane’s stated strategy of building its protective packaging business through a combination of organic and acquisitive growth.
B&D is a well-established business employing 15 staff and supplying customers in the growing aerospace, defence and space sectors, throughout the UK and internationally, from its facility in Southampton.
Macfarlane says there are significant opportunities to provide B&D’s existing customers with additional packaging solutions and to also develop new customers in the sectors within which B&D specialises.
For the year ended 31 December 2022, B&D generated sales of £2.6 million and an adjusted EBITDA of £0.5m, with strong growth in 2023 year-to-date.
Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK Limited, has acquired 100% of B&D for a maximum cash consideration of £3.85 million (including an earn-out of up to £0.55m based on agreed profit growth target over one year).
The consideration is being financed entirely from the group’s existing £35m bank facility.
Peter Atkinson, chief executive of Macfarlane, 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.”
House broker Shore Capital has upgraded its full year adjusted ebit forecast by 0.4% to £26.7m.
“Macfarlane retains a strong balance sheet with firepower to fund continuing and organic and acquisitive growth,” it said.