With this acquisition, Macfarlane Group is pursuing its strategy to build a strong protective packaging business in Northern Europe through a combination of organic and acquisitive growth.
Macfarlane has announced the acquisition of 100 per cent in German protective packaging distribution business Packmann. In the 2021 business year, Packmann generated sales of €12.8m, Ebitda of 900,000 € and pre-tax profits of €800,000. PackMann has 112 employees, including its founder and director Frank Westermann and director Volker Thorn, both of whom will remain with the company following its acquisition.
The purchase price amounts to a maximum of €8.625m (including an earn-out of €1.75m based on agreed profit growth targets over two years) and a recovery for closing adjustments estimated to be €600,000, including €600,000 of net bank debt. The consideration will be financed through the Group’s existing £30m bank facility, Macfarlane announces.
The acquisition is in line with Macfarlane’s strategy of building its protective packaging business in Northern Europe through a combination of organic and acquisitive growth and is immediately earnings enhancing, the company states, adding that there are significant opportunities for customers of both Packmann and Macfarlane to benefit from access to their respective ranges of protective packaging products and services.
Peter Atkinson, Chief Executive of Macfarlane, said: "Packmann is Macfarlane’s first acquisition outside the UK in recent years and I am delighted that we have secured this excellent business with its strong history of profitability and an experienced management team. This transaction strengthens our 'Follow the Customer' strategy, giving us a solid platform from which to accelerate the growth of our protective packaging business in Northern Europe.”