The acquisition is in line with Macfarlane’s strategy of building its protective packaging business through a combination of organic and acquisitive growth. They have acquired 100% of Suttons for a maximum cash consideration of £9.0m (including an earn-out of up to £2.5m based on agreed profit growth targets over two years). A further adjustment is due for net assets in excess of £1.0m with the expected net assets on completion being £5.7m, including £5.0m of net cash.
Founded in 1962, Suttons supplies specialist protective packaging to customers in the medical, electronics and industrial sectors, throughout England, from its manufacturing facilities in Chatteris, Cambridgeshire. For the year ended 31 March 2022, Suttons generated sales of £7.4m, EBITDA of £1.1m and pre-tax profits of £0.9m.