Macfarlane Group has confirmed it recently completed the acquisition of PackMann GmbH, a protective packaging distribution business based in Eppelheim near Heidelberg, Germany. The acquisition is in line with Macfarlane’s strategy of building its protective packaging business in Northern Europe through a combination of organic and acquisitive growth and is immediately earnings enhancing.
Macfarlane has acquired 100% of PackMann for a maximum cash consideration of €8.625m (including an earn-out of €1.75m based on agreed profit growth targets over two years) and a recovery for closing adjustments estimated to be €0.6m, including €0.6m of net bank debt. For the year ended 31 December 2021, PackMann generated sales of €12.8m, EBITDA of €0.9m and pre-tax profits of €0.8m.
PackMann has been established for nearly 28 years and supplies customers across Germany and neighbouring countries. The business has an experienced team of 112 employees, including its founder and director Frank Westermann and director Volker Thorn, both of whom will remain with the company following its acquisition.
Peter Atkinson, Chief Executive, Macfarlane, said, “PackMann is Macfarlane’s first acquisition outside the UK in recent years and I am delighted that we have secured this excellent business with its strong history of profitability and an experienced management team. This transaction strengthens our “Follow the Customer” strategy, giving us a solid platform from which to accelerate the growth of our protective packaging business in Northern Europe.”