Packaging
Macfarlane Group PLC acquires Allpoint Packaging Limited
Tuesday 07. October 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 Allpoint Packaging Limited ("Allpoint"), for a cash consideration of approximately £4.8 million.
£3.2 million of the consideration will be paid immediately, with the deferred consideration of up to £1.6 million becoming payable in the final quarter of 2009, subject to certain trading targets being met in the year to 30 September 2009.
Allpoint was established in 1995 and is based in Hayes, with additional sites in Southall and Basingstoke. Allpoint will strengthen Macfarlanes existing Packaging Distribution activities in London and improve market presence in the M3/M4 corridor. The management team at Allpoint will remain with the business post-completion.
The business made an operating profit of £0.6 million on turnover of £7.0 million in the year to 31 March 2007 (audited). Gross and net assets in the audited accounts at 31 March 2007 totalled £2.7 million and £0.7 million respectively.
The acquisition will be funded from existing resources with the forecast total Group debt at 31 December 2008 currently expected to be below £9 million.
Macfarlanes Chief Executive, Peter Atkinson commented: “Allpoint is a successful company and this acquisition demonstrates our continuing commitment to the strategy of developing our UK Packaging Distribution business. We are delighted that the Allpoint management team will remain with the business. They will add to our management capability and their experience in Far East sourcing will create new opportunities to bring more value to the Macfarlane customer base.”