Shares of Glasgow-based packaging firm Macfarlane Group rose about 6% on Monday after it announced the acquisition of GWP Holdings Limited, the owner of GWP Group Limited, a protective packaging manufacturing and distribution business based in Wiltshire, England. 

“Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK Limited, has acquired 100% of GWP for a maximum cash consideration of £15.1 million (including an earn-out of £5.1 million based on agreed profit growth targets over two years) and a further adjustment for net assets in excess of £1.6 million with the expected net assets on completion being £4.3 million, including £3.8 million of net cash,” said the Glasgow company.

“The consideration will be financed through the group’s recently extended £30 million bank facility.

“For the year ended 30 September 2020, GWP generated sales of £13.2 million, EBITDA of £2.1 million and pre-tax profits of £1.6 million.”

GWP supplies customers across the UK but mainly within the South West of England from its manufacturing facilities in Salisbury and Swindon.   

Macfarlane CEO Peter Atkinson said: “GWP is a profitable, growing, well invested company with an experienced management team that is fully committed to the business going forward. 

“The acquisition will be funded using bank debt and will be earnings enhancing. 

“We look forward to working with the team at GWP to support its continued growth and develop opportunities for us to work together to provide all our customers with a broader portfolio of value-add and sustainable protective packaging solutions. “