The acquisition aligns with Macfarlane’s strategy to develop its protective packaging business through a combination of organic and acquisitive growth
Macfarlane acquires Suttons Performance Packaging. (Credit: Jens P. Raak from Pixabay)
UK-based Macfarlane Group has acquired a 100% stake in Cambridgeshire-based protective packaging firm Suttons Performance Packaging for £9m.
The acquisition aligns with Macfarlane’s strategy to develop its protective packaging business through a combination of organic and acquisitive growth.
Established in 1962, Suttons develops specialist protective packaging for customers in the medical, electronics and industrial sectors in the UK from its manufacturing facilities in Chatteris, Cambridgeshire.
The deal is expected to help both parties by accessing each other’s industry expertise, ranges of bespoke protective packaging products and common supplier base.
Under the terms of the acquisition, two directors from Suttons’ team of 55 employees will remain with the Group upon completion of the deal.
Macfarlane CEO Peter Atkinson said: “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 to 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.”
The £9m cash consideration includes an earn-out of up to £2.5m based on agreed profit growth targets over two years.
Macfarlane said that the earnings accretive acquisition shows its buy-and-build strategy to deliver further stakeholder value.
The company serves a broad range of business customers and supplies them with protective packaging to lower the supply chain costs, and enhance operational efficiencies and brand presentation.
It distributes and produces more than 600,000 lines across a range of sectors, including retail e-commerce; consumer goods; food; logistics; mail order; electronics; defence, automotive and aerospace.
In May last year, Macfarlane Group snapped up German protective packaging distributor PackMann Gesellschaft für Verpackungen und Dienstleistungen (PackMann) for €8.6m.