Packaging distributor One Packaging was established in 2003 and supplies packaging and packaging materials from its Bingham base.
Macfarlane Group chief executive Peter Atkinson told PrintWeek that the acquisition would strengthen the Glasgow-headquartered company’s presence in the East Midlands and complement its existing site in Grantham, Lincolnshire.
Managing director Greg Almond will continue in the same role under Macfarlane Group, while One’s 10 staff will transfer under TUPE regulations to Macfarlane, bringing its total staff to around 750.
“The quality of a business is down to its people. We’re really delighted to have Almond as part of the Macfarlane team. He’s a very experienced individual,” Atkinson said.
The move is part of the group’s ongoing strategy to develop its packaging distribution businesses, which represents 80% of group sales. Speaking to PrintWeek in May, Atkinson said the group was looking for complementary companies in this sector.
One was in a pipeline of acquisitions the company has been wooing, with an eye on location and the types of sectors each company works in. “It’s our main focus and the business we want to build and develop,” Atkinson said.
This is the company’s first takeover this year, with two, Lane Packaging and Network Packaging, last year.
Atkinson said he hoped to secure one more this year. “We’re working very hard to see if we can achieve that.
“We profiled the whole of the UK market last year. We’ve got a list and we’re getting to work round that list. They are private companies and it’s down to the person and when they want to sell up. It’s about building relationships with people, building confidence with people. We’re pretty successful at doing that.”
Macfarlane Group will pay an initial £2m in cash from its existing borrowing facilities, with a further £750,000 payment to be made in Q3 of 2016 – half in cash and half in Macfarlane shares - subject to certain trading targets being met in the 12 months following acquisition.
Atkinson did not reveal how much the new business was expected to add to turnover as the company is in the quiet period before reporting its half-yearly accounts. But its last annual results showed a £4.9m turnover and £400,000 profit. Macfarlane expects it to grow around 25% in 12 months as part of the group.
