Macfarlane Group has confirmed it has completed the acquisition of GWP Holdings Ltd, the owner of GWP Group Ltd, the protective packaging manufacturing and distribution business based in Wiltshire, UK.
The acquisition is in line with Macfarlane’s strategy of building its protective packaging business through a combination of organic and acquisitive growth.
Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK Ltd, has acquired 100% of GWP for a maximum cash consideration of £15.1m (including an earn-out of £5.1m based on agreed profit growth targets over two years) and a further adjustment for net assets in excess of £1.6m with the expected net assets on completion being £4.3m, including £3.8m of net cash. The consideration will be financed through the Group’s recently extended £30m bank facility.
For the year ended 30 September 2020, GWP generated sales of £13.2m, EBITDA of £2.1m and pre-tax profits of £1.6m. GWP supplies customers across the UK but mainly within the South West of England from its manufacturing facilities in Salisbury and Swindon. The business has an experienced team of 107 employees, including its six Directors. Five of the Directors will remain with the company following its acquisition.
Peter Atkinson, Chief Executive of Macfarlane, said, “GWP is a profitable, growing, well invested company with an experienced management team that is fully committed to the business going forward. We look forward to working with the team at GWP to support its continued growth and develop opportunities for us to work together to provide all our customers with a broader portfolio of value-add and sustainable protective packaging solutions.”
