Macfarlane Group PLC on Monday announced the acquisition of specialist protective packaging business AE Sutton Ltd, which trades as Suttons Performance Packaging.
Macfarlane acquired the Cambridgeshire-based company for up to £9.0 million in cash, including an earn-out of up to £2.5 million based on profit growth targets over the next two years.
The company said the acquisition is in-line with its declared strategy of building its protective packaging business and will be earnings enhancing.
In the financial year that ended March 31, Suttons generated sales of £7.4 million and pretax profit of £900,000. Its adjusted earnings before interest, tax, depreciation and amortization was £1.1 million.
The acquisition is being financed entirely from the company’s existing £30.0 million bank facility.
Macfarlane is a Glasgow-based supplier of protective packaging materials, which it also designs and manufactures. Shares in the firm were up 0.5% at 107.50 pence on Monday afternoon in London.
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