Business News
Macfarlane Group PLC acquires Online Packaging Limited
Thursday 10. January 2008 - In line with the Groups strategy to develop its Packaging Distribution businesses, Macfarlane Group PLC ("Macfarlane") announces that it has today concluded an agreement to acquire Online Packaging Limited ("Online"), for a cash consideration of approximately £5.1 million. £4.3 million of the consideration will be paid immediately, with the deferred consideration of up to £0.8 million becoming payable in the first quarter of 2009, subject to certain trading targets being met in the year to 31 December 2008.
Online was established in 1994 and is based in Gloucester, with additional sites in Wakefield and Hinckley. Online complements Macfarlanes existing Packaging Distribution activities in the UK, particularly in the South-West and in Yorkshire. The current management team at Online will remain with the business post-completion.
The business made an operating profit of £0.6 million on turnover of £7.5 million in the year to 31 August 2007 (audited). Gross and net assets in the audited accounts at 31 August 2007 totalled £3.8 million and £1.0 million respectively.
Macfarlanes Chief Executive, Peter Atkinson commented: “Online is a successful company and this acquisition further demonstrates our commitment to the strategy of developing our Packaging Distribution business. We are also delighted that the Online management team will remain with the business and look forward to the experience and value they will bring to Macfarlane Group”.