Macfarlane Group PLC has acquired the trade and selected assets of Greenwood Stock Boxes Ltd. and 100% of the share capital of its sister company, Nottingham Recycling Ltd., (“Greenwoods”), in conjunction with a proposed share placing to raise approximately £8 million before expenses.
The maximum consideration for the acquisition is £16.75m, to be paid in a combination of Macfarlane shares and cash.
Greenwoods is a well established packaging distributor located in Nottingham and Melton Mowbray. The business primarily distributes corrugate packaging with a particular focus on the clothing retail sector. It also operates a small corrugate manufacturing site, and a collection and baling service for waste corrugate.
Macfarlane has conditionally agreed to acquire Greenwoods for a consideration of up to £16.75 million in a combination of 9,090,909 new ordinary Macfarlane shares of 25 pence each (“Vendor Shares”) and £7.5 million in cash (total value: £13.5 million) and a cash earn out of £3.25m after a period of 12 months, subject to certain trading targets being met. The Macfarlane Board anticipates the acquisition will be earnings enhancing in the first full year of ownership.
Macfarlane’s Chief Executive, Peter Atkinson, commented:
“This acquisition is another major step forward in our growth strategy. Greenwoods is a long established, high quality business which has successfully developed into attractive markets with good growth potential. We see significant benefits in Greenwoods becoming part of Macfarlane Group and look forward to their continued success.”