Macfarlane Group PLC (LSE:MACF), the Scottish packaging company, has paid £3.85 million to acquire B&D 2010 Group Limited, a specialist protective packing business headquartered in Southampton.
B&D, a well-established firm with 15 employees, serves clients in the expanding aerospace, defence and space sectors across the UK and internationally and allows Macfarlane to offer these existing customers the opportunity for more packaging solutions.
Including an earn-out of up to £0.55 million based on agreed profit growth targets over a year, the deal is being financed through Macfarlane's existing £35 million bank facility.
With B&D reporting sales of £2.6 million and an adjusted EBITDA of £0.5 million for the year ending December 2022, the London-listed group’s move underscores its commitment to expanding its market presence and enhancing its offerings within key sectors.
Peter Atkinson, chief executive of Macfarlane, said in a company statement: "B&D is an excellent business servicing high-quality customers in attractive growth sectors and complements Macfarlane's existing specialist protective packaging activities. We look forward to working with the team at B&D to support its continued growth."
Shares in Macfarlane group lifted a little under 2% in early trading on Monday, having opened at around 108.5p.