Based in the North West region of England, Gottlieb supplies protective packaging products to customers across a wide range of sectors from its warehouse facilities in Manchester
Macfarlane Group snaps up Gottlieb Packaging. (Credit: Macfarlane Group UK Ltd)
Macfarlane Group UK, a subsidiary of Macfarlane, has acquired A & G Holdings, the owner of Gottlieb Packaging Materials, for a maximum cash consideration of £3.55m.
Based in the North West region of England, Gottlieb supplies protective packaging products to customers across a wide range of sectors from its warehouse facilities in Manchester.
The acquisition supports Macfarlane’s strategy of growing its protective packaging business via a combination of organic and acquisitive growth.
The transaction deal includes an earn-out of up to £0.8m based on agreed profit growth targets over two years.
According to the terms of the transaction, a further adjustment is pending for net assets over £0.3m with the expected net assets on completion being £1.0m, including £0.8m in net cash.
The entire consideration is being paid for out of the existing £30m bank facility held by Macfarlane.
Gottlieb generated sales of £4.5m and reported pre-tax profits and EBITDA of £0.7m for the fiscal year ended on 31 December 2022.
Macfarlane CEO Peter Atkinson said: “Gottlieb is a well-run, successful protective packaging distributor with an experienced management team.
“The acquisition of Gottlieb complements the recent opening of our new distribution facility in Heywood and further strengthens our ability to serve customers in the North-West of England. We look forward to working with the team at Gottlieb to support its continued growth.”
Gottlieb has 15 employees, including two directors, all of whom will be retained with the business upon the closing of the acquisition.
Macfarlane Group said that the customers of Gottlieb can now have access to its wide range of protective packaging goods and services.
The latest earnings accretive acquisition shows Macfarlane’s ‘buy and build’ strategy in delivering further stakeholder value.
Last month, Macfarlane Packaging opened its second packaging Innovation Lab at its flagship Northwest Regional Distribution Centre in Heywood, near Manchester in the UK.