Packaging firm Macfarlane Group has acquired Network Packaging in a transaction worth £7.5 million.
Macfarlane Group said the deal comprises an initial consideration of £4.9 million of which £4.3 million will be paid in cash, £0.6 million will be settled by the issue of 1,592,360 ordinary shares, and £2.6 million will become payable in two instalments in t 2015 and 2016, subject to “certain trading targets” being met.
The company has also announces it has raised £3 million, before expenses, by way of a new share placing, though the group states the Network Packaging acquisition “is not conditional on the placing”.
Macfarlane’s Chief Executive, Peter Atkinson commented:
“Network Packaging is a successful company and today’s acquisition demonstrates our continuing commitment to the strategy of developing our UK Packaging Distribution business. We are delighted that the Network Packaging management team will remain with the business. They will add to our management capability and their experience in the third-party logistics sector and internet retail will complement the existing Macfarlane strengths in these market sectors.”
