The Glasgow-headquartered packaging company completed the earnings enhancing acquisition on Friday (29 September).
B&D, which will retain its identity, employs 15 staff and supplies customers in the growing aerospace, defence and space sectors, throughout the UK and internationally, from its B&D Foam facility in Southampton.
According to its website, the business also has sites in Kinross and Huntingdon, for sales and manufacturing, respectively, with its head office in Barnstaple.
Macfarlane said 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 £2.6m and an adjusted EBITDA of £0.5m, with strong growth in 2023 year-to-date according to Macfarlane.
Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK Ltd, has acquired 100% of B&D for a maximum cash consideration of £3.85m (including an earn-out of up to £0.55m based on an agreed profit growth target over one year), the equivalent of 7.7x adjusted EBITDA.
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.”
B&D managing director David Frame added: “B&D has built a strong reputation in the market for complex protective packaging solutions, primarily in the space, defence, and aerospace sectors, and we continue to expand our portfolio of products and services.
“This acquisition will allow us to pursue growth in these sectors and further penetrate the international markets we serve. Macfarlane Packaging’s wide portfolio of services will enhance our offering with the ability to offer new and existing clients an extended range of services.”
1,000-plus staff Macfarlane Group’s share price has fluctuated between 108.5p and 111.5p since the acquisition was announced yesterday (2 October) but stood at 111p at the time of writing at lunchtime today, up 2.3% on yesterday’s close (52-week high: 121p, low: 85.20p).
In August, the group reported a strong start to 2023, with increases in both its sales and pre-tax profit in its half-year results. Its other recent acquisitions have included Suttons, in February this year, and Gottlieb two months later.
