Peter Atkinson

This earnings enhancing acquisition is in line with Macfarlane’s stated strategy of building its protective packaging business through a combination of organic and acquisitive growth.

B&D is a well-established business employing 15 staff and supplying customers in the growing aerospace, defence and space sectors, throughout the UK and internationally, from its facility in Southampton. There are significant opportunities to provide B&D’s existing customers with additional packaging solutions and to also develop new customers in the sectors within which B&D specialises.

For the year ended 31 December 2022, B&D generated sales of £2.6m and an adjusted EBITDA of £0.5m, with strong growth in 2023 year-to-date.

Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK Limited, has acquired 100% of B&D for a maximum cash consideration of £3.85m (including an earn-out of up to £0.55m based on an agreed profit growth target over one year).

The consideration is being financed entirely from the group’s existing £35.0m bank facility.

Peter Atkinson, chief executive of Macfarlane, said: “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.”

David Frame, managing director at B&D, said: “B&D has built a strong reputation in the market for complex protective packaging solutions, primarily in the space, defence and aerospace sectors, and we continue to expand our portfolio of products and services.

“This acquisition will allow us to pursue growth in these sectors and further penetrate the international markets we serve.

“Macfarlane Packaging’s wide portfolio of services will enhance our offering with the ability to offer new and existing clients an extended range of services.”