Macfarlane Group PLC acquires One Packaging Ltd

In line with the Group’s strategy to develop its Packaging Distribution businesses, Macfarlane Group PLC (“Macfarlane”) announces that it has today concluded an agreement to acquire One Packaging Limited (“One”), for a consideration of up to £2.75 million.

The initial consideration of £2.0 million will be paid in cash from Macfarlane’s existing borrowing facilities. The deferred consideration of up to £0.75 million will become payable in the third quarter of 2016, subject to certain trading targets being met in the twelve month period following acquisition (“the earn-out period”). Half the deferred consideration will be paid in cash and half will be paid in ordinary shares in Macfarlane Group PLC. One was established in 2003 and is a packaging distributor based in Bingham near Nottingham, which will strengthen Macfarlane’s existing Packaging Distribution activities in the East Midlands.

One made an operating profit of £0.4 million before non-recurring costs on turnover of £4.9 million in the financial year to 31 July 2014. Gross and net assets in the audited accounts at that date totalled £2.0 million and £0.1 million respectively. The acquisition is based on net assets at completion totalling £0.2 million. The deferred consideration reflects One’s business plan to improve turnover and operating profits by over 25% by the end of the earn-out period.

One made an operating profit of £0.4 million before non-recurring costs on turnover of £4.9 million in the financial year to 31 July 2014. Gross and net assets in the audited accounts at that date totalled £2.0 million and £0.1 million respectively. The acquisition is based on net assets at completion totalling £0.2 million. The deferred consideration reflects One’s business plan to improve turnover and operating profits by over 25% by the end of the earn-out period.