A Scottish packaging specialist has continued its plan to develop its distribution activities with the acquisition of a company in Hayes. Macfarlane Group could spend as much as £4.8 million buying Allpoint Packaging if agreed targets are met by the end of next September.
On completion, £3.2 million was paid in cash funded from its existing resources, with the balance deferred until the final quarter of next year.
The deal strengthens Macfarlane’s packaging distribution activities in London as well as improving its presence in the M3/M4 corridor. Under the terms of the deal the acquired business will continue to be run by its management.
This latest development follows the group’s acquisition in January of Online Packaging in Gloucester for some £5.1 million.
Macfarlane chief executive Peter Atkinson said as well as developing the group’s UK packaging operations Allpoint’s management’s experience of Far East sourcing will present new opportunities.
Glasgow-based Macfarlane employs 800 people at 23 sites across the UK and Ireland servicing more than 16,000 companies in the logistics, electronics, food manufacturing and retail sectors.
Allpoint was established in 1995 and has additional sites in Southall and Basingstoke. In the year to April 2007, it made an operating profit of £600,000 on a £7 million turnover.