Macfarlane Group confirmed the sale of Macfarlane Labels Ltd and its subsidiaries, Macfarlane Group Ireland (Labels & Packaging) Limited and Macfarlane Group Sweden AB on 31 December 2021 to The Reflex Group Ltd. Macfarlane Labels designs and prints high quality self-adhesive and resealable labels, principally for FMCG companies.
The consideration for Macfarlane Labels is £6.4m, which will broadly align with net asset value. 95% of the consideration was paid on completion with the balance payable within three months of completion. For the year ended 31 December 2020, Macfarlane Labels generated profit before tax of £0.3m, and as at 31 December 2020 had gross assets of £15.1m. Macfarlane Labels employs 109 employees who will remain in the business after the sale. The proceeds from the sale will be strategically invested in the continuing growth of Macfarlane’s protective packaging businesses.
Peter Atkinson, Chief Executive, Macfarlane, said, “Macfarlane Labels has been a long-standing part of the Group. We believe that its sale to Reflex, with their well-established position and scale in the labels market, creates the best opportunity for Macfarlane Labels to develop. The sale will allow the Group to focus resources on growing our protective packaging businesses both in the UK and Europe.”
