Macfarlane Group PLC has acquired Redruth-based Carters Packaging in a deal worth up to £4.5 million.
Carters is a leading distributor of protective packaging in the south west and Macfarlane says the acquisition is in line with its strategy of building its business through a combination of organic and acquisitive growth.
Macfarlane is buying Carters for a maximum cash consideration of £4.5 million (including an earn-out over two years of £1.5 million). For the year ended March 31 2020, Carters generated sales of £4.2 million and pre-tax profits of £0.5 million.
Carters focuses principally on customers within Cornwall and Devon from its 25,000 sq f. facility in Redruth and will benefit from access to Macfarlane’s extended range of protective packaging products and services. The business has an experienced team of 25 employees, including its two directors, all of whom will remain with the business following the acquisition.
Chief executive of Macfarlane, Peter Atkinson, said: “Carters is a well-run, successful protective packaging distributor that meets our strict acquisition criteria and its acquisition will be earnings-enhancing in its first full year in the group.
“I am confident that the business will prove to be an excellent acquisition improving our geographic penetration and extending our customer reach in the south west of England.”