Macfarlane in £1.8m swoop on rival packaging firm
Packaging supplier Macfarlane Group has taken over a fellow Glasgow firm in a deal worth up to £1.8 million.
The group said the acquisition of the packaging business of Edward McNeil was in line with its strategy to extend its distribution footprint in the UK market.
Edward McNeil, which was established in 1919, employs 12 people and generated sales of about £3.6m in 2015.
Managing director Samuel Kingsley said: “I am delighted that our packaging business has been acquired by Macfarlane. The acquisition will create opportunities to develop the business in the coming years.”
Macfarlane will fund the deal from existing borrowing facilities and said a deferred consideration of £150,000 would be payable in the next 12 months, based on “certain working capital targets”.
Chief executive Peter Atkinson said: “Edward McNeil is a successful business with a high quality customer base who benefit from excellent customer service levels.
“The business has a good team, who will complement the Macfarlane Packaging Distribution business based in Linwood and strengthen Macfarlane’s presence in Scotland.”
In February, Macfarlane posted a 21 per cent jump in annual pre-tax profits to £6.8m, helped by rising demand from internet retailers.