Tue, 14 Jan 2025 | BUSINESS SALE
Listed packaging firm Macfarlane Group has bought peer Pitreavie Group for £18 million.
The deal for the protective packaging manufacturer and distributor based in Aberdeen, Glenrothes and Glasgow, includes an earn-out of £4 million over two years.
Founded in 2005, Pitreavie designs, manufactures and distributes protective packaging, supplying to customers in the food & drink, energy, electronics and industrial sectors, mainly in Scotland. This includes Taylor's Snacks and Summerhouse Drinks.
It operates a corrugate box manufacturing plant, newly opened in 2020; a specialist protective packaging manufacturing and assembly facility; a protective packaging distribution business; and a temperature-controlled packaging operation. It employs 159 people.
For the year ended 31 December 2024, Pitreavie generated sales of £24.8 million, with adjusted EBITDA of £2.5 million and adjusted pre-tax profits of £1.3 million.
Macfarlane has two main divisions. Macfarlane Packaging Distribution, which distributes throughout the UK a range of protective packaging products; and Macfarlane Design and Manufacture which designs and produces protective packaging for high value and fragile products.
It is headquartered in Glasgow and employs over 1,000 people at 40 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands. It supplies over 20,000 customers.
Macfarlane said Pitreavie's business would complement its own operations and that its senior management team would remain with the business post-completion to support the continued growth of both firms.
Peter Atkinson, Chief Executive of Macfarlane, said: "Pitreavie is a fast-growing, well-invested company with an experienced management team that is fully committed to the business. The acquisition represents a unique and exciting opportunity to grow our business in Scotland and provide in-house supply to our businesses in the North of England. We look forward to working with the team at Pitreavie 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."
Pitreavie has been owned, invested in and expanded by Joe Diamond and Gordon Delaney since 2005. Diamond said: "We are immensely proud of all we have achieved under the Pitreavie banner. We knew that the sale of the company had to be to a business with the same expertise, ambition and deep respect for the industry."
The deal is being financed entirely from Macfarlane's existing banking facility, which was recently expanded to £40 million.
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