Tue, 06 Apr 2021 | BUSINESS SALE
Cornish logistics firm Carters Packaging has been acquired by Glasgow-based Macfarlane’s Group in a £4.5 million deal. The fee is a 9x multiple of Carters’ pre-tax profits of £0.5 million for the year ending March 31 2020, generated on revenue of £4.2 million.
The acquisition will see Macfarlane’s Group, a wholly owned-subsidiary of packaging group Macfarlane’s, acquire 100 per cent of Carters for a £4.5 million maximum cash consideration, including a £1.5 million earn-out over two years.
Macfarlane states that the deal complements its growth strategy of targeting both organic and acquisitive growth opportunities. It adds that the acquisition will be immediately earnings enhancing.
Based in Redruth, Cornwall, Carters largely serves customers across Cornwall and Devon. Macfarlane’s has taken on the lease for the company’s 25,000 sq ft Redruth facility, which will bolster the group’s packaging capabilities. Carters’ 25 staff, including two directors, will remain with the company post-acquisition.
Macfarlane Chief Executive Peter Atkinson said: "Carters is a well-run, successful protective packaging distributor that meets our strict acquisition criteria and its acquisition will be earnings-enhancing in its first full year in the group.”
"I am confident that the business will prove to be an excellent acquisition improving our geographic penetration and extending our customer reach in the South West of England."
Macfarlane’s said that it had paused its acquisition activities during the COVID-19 pandemic, but has begun ramping up again in recent weeks, with the Carters deal and its takeover of GWP in early March.
The company added that the acquisition of Carters would expand its presence in Devon and Cornwall, which it had previously had to serve from its Plymouth facility.
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