Macfarlane Group PLC announces acquisition of Greenwoods

Macfarlane Group

Macfarlane Group acquires Greenwoods

Glasgow-based packaging and label company Macfarlane Group has this morning announced its latest acquisition – its largest to date at £16.75m

The group has announced the acquisition of Greenwood Stock Boxes Ltd and 100% of the share capital of its sister company, Nottingham Recycling Ltd, in conjunction with a proposed share placing to raise approximately £8m before expenses.

The maximum consideration for the acquisition is £16.75m, to be paid in a combination of Macfarlane shares and cash.

Greenwoods is a distributor located in Nottingham and Melton Mowbray, it distributes corrugate packaging with a particular focus on the clothing retail sector. It also operates a small corrugate manufacturing site, and a collection and baling service for waste corrugate.

The Macfarlane Board is confident that Greenwoods will provide access to new customers, increase Macfarlane’s exposure to the clothing retail sector and offer synergistic cost savings through the supply chain.

Macfarlane has conditionally agreed to acquire Greenwoods for a consideration of up to £16.75m in a combination of 9,090,909 new ordinary Macfarlane shares of 25 pence each and £7.5m in cash, and a cash earn out of £3.25m after a period of 12 months, subject to certain trading targets being met. The Macfarlane Board anticipates the acquisition will be earnings enhancing in the first full year of ownership.

Macfarlane's chief executive, Peter Atkinson, said: “This acquisition is another major step forward in our growth strategy. Greenwoods is a long established, high quality business which has successfully developed into attractive markets with good growth potential. We see significant benefits in Greenwoods becoming part of Macfarlane Group and look forward to their continued success.”