Leyland Packaging is a major protective packaging distributor that focuses on industrial customers
Image: Macfarlane has acquired protective packaging distributor Leyland Packaging (Credit: Pixabay)
Macfarlane Group has acquired protective packaging distributor Leyland Packaging Company (Lancs) for a maximum consideration of £3.25m.
Leyland Packaging’s product portfolio is made up of protective packaging solutions, cardboard boxes and containers, packaging tapes and accessories, strapping and stapling, stretch film products and accessories.
With a major focus on industrial customers, Leyland operates facilities with around 37,000ft² of space in Leyland. The facilities offer better access to M6, M61 and M65 motorways.
Leyland reported sales of around £4m and pre-tax profits of £0.55m in the fiscal year ended on 31 December 2018.
As per terms of the deal, the company will secure £2m in cash, as well as 264,382 ordinary shares of 25p each in Macfarlane at a value of £0.25m.
Based on the achievement of certain trading targets in the one-year period ending on 31 August 2020, Leyland will secure deferred consideration of up to £1m in the fourth quarter of the same year.
Following the acquisition, Macfarlane will retain Leyland’s 12 employees, who can access Macfarlane’s extended range of protective packaging products and services.
Macfarlane said that the acquisition is in line with its strategy of building the business through a combination of organic and acquisitive growth.
Macfarlane chief executive Peter Atkinson said: “Leyland is a high-quality protective packaging business that meets our acquisition criteria and will be earnings-enhancing in its first full year in the Group.
“I am confident that the business will be another good acquisition for Macfarlane improving our geographic coverage in the North-West of England and extending our customer reach.”
Based in Glasgow of Scotland, Macfarlane Group operates two businesses, including packaging distribution and manufacturing operations.
Macfarlane Packaging is a major UK distributor of various protective packaging products, while Macfarlane Packaging Design and Manufacture designs and produces protective packaging solutions and Macfarlane Labels designs and prints self-adhesive and resealable labels for FMCG companies.
In May this year, Macfarlane acquired protective packaging distribution business Ecopac (UK) for a cash consideration of £3.9m.