Mon, 02 Oct 2023 | BUSINESS SALE
Macfarlane Group has continued to acquisitively grow its protective packaging business with a deal for Southampton-based B&D 2010 Group. The deal is the latest in a string of protective packaging acquisitions that the group has made over recent years.
The deal is worth a maximum cash consideration of £3.85 million, which includes an earn-out of up to £550,000 based on an agreed profit growth target over one year. The full consideration, if reached, would represent a 7.7x multiple of B&D 2010’s EBITDA of £500,000 for the year ending December 31 2022, generated on sales of £2.6 million.
B&D 2010 Group has a 15-strong workforce and supplies customers across the defence, aerospace and space sectors, both within the UK and internationally. The acquisition adds to Macfarlane’s existing workforce of more than 1,000 staff at 37 sites, which are principally located across the UK, but also in Ireland, the Netherlands and Germany.
The acquisition is earnings enhancing and fits with the group’s strategy of building its protective packaging business through both M&A and organic growth. The group has said there are significant opportunities to provide B&D’s existing customer base with further packaging solutions and develop new customers across its specialist sectors.
B&D Chief Executive Peter Arkinson commented: "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."
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