In line with its strategy to develop its Packaging Distribution business in the UK protective packaging market, Macfarlane Group PLC (“Macfarlane”) has today confirmed the acquisition of Colton Packaging Teesside.
Colton Packaging Teesside is based in Thornaby near Middlesbrough and has been established for 20 years. It currently has eight employees and is the North East branch of Colton Packaging Limited, an established regional distributor of protective packaging materials based in Leicester. In 2015 Colton Packaging Teesside generated sales of c£3.0m.
Macfarlane will pay up to £1.25m for Colton Packaging Teesside assuming key financial objectives are achieved in the 12-month period post-acquisition. Both the initial consideration of £1.05m and the deferred consideration of £0.20m will be paid from existing borrowing facilities.
Peter Atkinson, Chief Executive of Macfarlane, commented: “Colton Packaging Teesside is a high quality business with a good team of people who will complement the Macfarlane Packaging Distribution business based in Newcastle and strengthen Macfarlane’s presence in the North East of England.”