Tue, 07 Mar 2023 | BUSINESS SALE
Specialist protective packaging manufacturing firm AE Sutton has been acquired by Macfarlane Group in a deal worth up to £9 million. The price, which includes an earn-out of up to £2.5 million contingent upon agreed profit growth targets for the next two years, represents an 8.1 x multiple of AE Sutton’s £1.1 million EBITDA for the year ending March 31 2022.
During that year, the company reported pre-tax profits of £0.9 million on revenue of £7.4 million. Its fixed assets were valued at £2.5 million and current assets at £2.9 million, with the company holding net assets of close to £4.1 million.
AE Sutton was founded in 1962 and trades as Suttons Performance Packaging. The Cambridgeshire-based company serves customers across the electronics, industrial and medical sectors from its Chatteris manufacturing facility. Following the acquisition, AE Sutton’s two directors will remain with the business.
Macfarlane, which is based in Glasgow, is a designer, manufacturer and supplier of protective packaging. The company’s growth strategy is focused around its protective packaging business and incorporates both buy and build acquisitions and organic growth opportunities. The company has also made strategic divestments as it focuses on the growth of its protective packaging operations.
Macfarlane Chief Executive Peter Atkinson commented: “Suttons is a profitable, well invested company with an experienced management team that is fully committed to the business going forward.”
"The acquisition is being funded using our existing bank facility and will be earnings enhancing. We look forward working with the team at Suttons to support its continued growth and develop opportunities for us to work together to provide all our customers with a broader portfolio of protective packaging solutions.”
In its recent accounts for 2022, Macfarlane reported a 10 per cent increase in revenue from continuing operations, which grew to £290.4 million, despite a drop in demand for e-commerce, while pre-tax profits grew 7 per cent to £19.9 million.
Macfarlane highlighted the contributions made by its recent acquisitions of Carters Packaging in 2021 and Packmann in 2022 to its improved results.
Find businesses for sale here.
If you are looking for an exit, we can help!
This is a chance to acquire a longstanding and reputable manufacturer of modern concrete garages, with roots dating back to the 1940s.
Offered to market is this well established and highly reputable manufacturer providing design and fabrication services as well as a range of innovative and premium quality products to this niche sector. The business also offers comprehensive maintena...
Offered to market is this well established and highly reputable independent manufacturer of high quality, decorative lighting solutions. Providing the full suite of end to end services from design, manufacture and delivery, the business has forged a...
04
|
Apr
|
WPP buys data collaboration platform InfoSum | BUSINESS SALE
WPP has bought data collaboration platform InfoSum to boost ...
03
|
Apr
|
Cambrian Training Group chooses employee ownership | BUSINESS SALE
Cambrian Training Group is celebrating its 30th birthday by ...
03
|
Apr
|
Mobeus sells investment in Star Brands after boosting EBITDA by 15X | BUSINESS SALE
Equity investor Mobeus has sold its investment in Star Brand...
14
|
Jan
|
Macfarlane wraps up £18 million deal for packaging group Pitreavie | BUSINESS SALE
Listed packaging firm Macfarlane Group has bought peer Pitre...
02
|
Oct
|
Macfarlane continues growing protective packaging business with new deal | BUSINESS SALE
Macfarlane Group has continued to acquisitively grow its pro...
04
|
Jan
|
Macfarlane sells £15.4m turnover labels business for £6.4m | BUSINESS SALE
Glasgow-based protective packaging firm Macfarlane Group has...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.