Acquisition

RNS Number : 0025F

Macfarlane Group PLC

03 October 2008

 



Macfarlane Group PLC acquires Allpoint Packaging Limited

3 October 2008

In line with the Group's strategy to develop its Packaging Distribution businesses, Macfarlane Group PLC ('Macfarlane') announces that it has today concluded an agreement to acquire Allpoint Packaging Limited ('Allpoint'), for a cash consideration of approximately £4.8 million. £3.2 million of the consideration will be paid immediately, with the deferred consideration of up to £1.6 million becoming payable in the final quarter of 2009, subject to certain trading targets being met in the year to 30 September 2009.

Allpoint was established in 1995 and is based in Hayes, with additional sites in Southall and Basingstoke. Allpoint will strengthen Macfarlane's existing Packaging Distribution activities in London and improve market presence in the M3/M4 corridor. The management team at Allpoint will remain with the business post-completion.

The business made an operating profit of £0.6 million on turnover of £7.0 million in the year to 31 March 2007 (audited). Gross and net assets in the audited accounts at 31 March 2007 totalled £2.7 million and £0.7 million respectively.

The acquisition will be funded from existing resources with the forecast total Group debt at 31 December 2008 currently expected to be below £9 million.

Macfarlane's Chief Executive, Peter Atkinson commented: 'Allpoint is a successful company and this acquisition demonstrates our continuing commitment to the strategy of developing our UK Packaging Distribution business. We are delighted that the Allpoint management team will remain with the business. They will add to our management capability and their experience in Far East sourcing will create new opportunities to bring more value to the Macfarlane customer base.'

Further information:        Archie Hunter         Chairman                  0141 333 9666

Peter D. Atkinson    Chief Executive         0141 333 9666

John Love                Finance Director        0141 333 9666

Media enquiries              Callum Spreng         Spreng & Co.             07803 970103

Notes to Editors

Macfarlane Group PLC is a UK-based group of companies focused on packaging related activities. The Packaging Distribution business is the leading UK distributor of a comprehensive range of packaging consumable products. The Manufacturing Operations comprise three businesses, transit packaging manufacturing; self-adhesive and re-sealable labels; and plastics closures.

Headquartered in Glasgow, Scotland, Macfarlane Group employs 800 people at 23 sites, principally in the UK and Ireland and services 16,000+ customers, in a wide range of sectors including: consumer goods; logistics; electronics; food manufacturing and retailing; internet and home retailing.

 

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