The acquisition of GWP is part of Macfarlane’s strategy of building its protective packaging business through a combination of organic and acquisitive growth
Macfarlane Group UK, a wholly-owned subsidiary of Macfarlane Group, has acquired protective packaging company GWP Holdings for a cash consideration of £15.1m.
The transaction consists of a further adjustment for net assets in excess of £1.6m with the expected net assets on completion being £4.3m, including £3.8m of net cash.
GWP Group, based in Wiltshire, is a protective packaging manufacturing and distribution business.
It serves customers across the UK with the main focus on the South West of England. The company has manufacturing facilities in Salisbury and Swindon.
The company employs 107 people, of whom six are directors. Upon completion of the deal, five directors will continue with the company.
GWP reported sales of £13.2m, EBITDA of £2.1m and pre-tax profits of £1.6m for the year ended 30 September 2020.
The acquisition of GWP is part of the company’s strategy of building its protective packaging business through a combination of organic and acquisitive growth.
Macfarlane chief executive Peter Atkinson said: “GWP is a profitable, growing, well-invested company with an experienced management team that is fully committed to the business going forward. The acquisition will be funded using bank debt and will be earnings enhancing.
“We look forward to working with the team at GWP to support its continued growth and develop opportunities for us to work together to provide all our customers with a broader portfolio of value-add and sustainable protective packaging solutions. ”
In January last year, Macfarlane Group acquired Teesside-based Armagrip, a protective packaging distribution business that serves customers in the industrials sector across the North of England.
Based in Glasgow of Scotland, Macfarlane manages two divisions to serve a range of business customers.
Macfarlane Packaging Distribution offers a comprehensive range of protective packaging products, while Macfarlane Labels provides self-adhesive and resealable labels, and Macfarlane Design and Manufacture offers protective packaging for high value and fragile products.