Macfarlane Group PLC on Monday said it will buy Polyformes Ltd, noting ‘significant’ opportunities to benefit from access to its industry expertise.
The Glasgow-based packaging firm said the acquisition is for a maximum of £11.5 million, including an earn-out of up to £4.8 million over two years.
Polyformes is based in Leighton Buzzard in Bedfordshire, England and designs and converts foam, primarily for specialist protective packaging applications.
Macfarlane said it views the takeover as earnings-enhancing and good for progress in its strategy to build a protective packaging business via a combination of organic growth and acquisitions.
It said Polyformes generated sales of £9.3 million in 2023, with a pretax profit of £1.4 million.
Macfarlane Chief Executive Officer Peter Atkinson 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.’
Macfarlane shares were up 1.6% to 118.90 pence each on Monday morning in London.
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