London-listed packaging specialists Macfarlane Group made a further move into protective packaging on Monday with the acquisition of Polyformes, it has said.
The Glasgow-based firm, which in 2023 saw its profit grow by 10 per cent despite a dip in revenue, acquired 100 per cent of Polyformes for a maximum cash consideration of £11.5m, including an earn-out of up to £4.8m over two years.
The move is the Macfarlane’s fifth recent acquisition, having also picked up the likes of Allpack and B&D Group in the last year. The acquisitions form part of what it has dubbed its “buy and build” strategy.
In Polyformes’ case, the purchase was financed entirely from an existing bank facility, the scope of which it said it still operates “well within”.
Peter Atkinson, the firm’s chief executive, 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.”
For the year ended December 31, Poltyformes generated sales of £9.3m, with earnings before interest, tax, deprecation and amortisation (EBITDA) of £1.5m and pre-tax profits of £1.4m.