Packaging swoop

Macfarlane broadens portfolio with Polyformes deal

Peter Atkinson
Peter Atkinson: opportunities

Macfarlane Group, the Glasgow-based packaging company, has acquired Polyformes in a deal worth up to £11.5 million.

The agreement includes an earn-out of up to £4.8m over two years and is being financed entirely from Macfarlane’s existing bank facility.

Based in Leighton Buzzard and founded in 1977, Polyformes designs and converts foam primarily for specialist protective packaging applications supplying to customers in the aerospace, medical, defence and industrial sectors, throughout the UK.

It has 60 employees, including its three directors who will all remain with the group following the acquisition.

For the year ended 31 December 2023, Polyformes generated sales of £9.3m, with EBITDA of £1.5m and pre-tax profits of £1.4m.

Macfarlane said the deal was earnings accretive and further demonstrates its ‘buy and build’ strategy in delivering further stakeholder value.

Peter Atkinson, chief executive of Macfarlane, said: “Polyformes is a profitable, growing, well invested company with an experienced management team that is fully committed to the business.

“We look forward to working with the team at Polyformes to support its continued growth and develop opportunities for us to work together to provide our customers with a broader portfolio of protective packaging solutions.”

In a note this morning house broker Macfarlane said that with bank facilities of £35m committed to December next year the company has the firepower to support further acquisitions.

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