Macfarlane, Glasgow-based packaging giant, announces acquisition of 100 percent of German protective packaging distribution company Packmann. In the 2021 business year, Packmann generated sales of 12.8 million EUR, Ebitda of 900,000 EUR and pre-tax profits of 800,000 EUR.
A protective packaging distribution company based in Eppelheim near Heidelberg, PackMann was founded nearly 28 years ago and supplies customers throughout Germany and neighboring countries. The company has 112 employees, including its founder and director Frank Westermann and director Volker Thorn, both of whom will remain with the company following its acquisition.
The purchase price amounts to a maximum of EUR 8,625 million (Ā£ 7.29 million), including an earn-out of EUR 1,75 million based on agreed profit growth targets over two years and a EUR 600,000 of net bank debt. The consideration will be financed through the Groupās existing Ā£ 30 million bank facility. The acquisition is in line with Macfarlaneās strategy of building its protective packaging business in Northern Europe through a combination of organic and acquisitive growth. According to the company, there are significant opportunities for customers of both Packmann and Macfarlane to benefit from access to their respective ranges of protective packaging products and services. Ā«Packmann is Macfarlaneās first acquisition outside the UK in recent years and I am delighted that we have secured this excellent business with its strong history of profitability and an experienced management teamĀ» says Peter Atkinson, chief executive of Macfarlane. Ā«This transaction strengthens our āFollow the Customerā strategy, giving us a solid platform from which to accelerate the growth of our protective packaging business in Northern EuropeĀ».