Glasgow-based packaging firm Macfarlane Group announced it acquired Carters Packaging (Cornwall) Limited, the owner of Carters Packaging Limited.

“Carters is a well-established business, based in Redruth, Cornwall, and is the leading distributor of protective packaging in the South-West of England,” said Macfarlane.

“The acquisition is in line with Macfarlane’s declared strategy of building its business through a combination of organic and acquisitive growth.

“Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK Limited, has acquired 100% of Carters for a maximum cash consideration of £4.5 million (including an earn-out over two years of £1.5 million).  

“The expected net assets on completion are £0.9 million.”

Macfarlane said the deal will be financed through the group’s recently extended £30 million bank facility.

For the year ended March 31, 2020, Carters generated sales of £4.2 million and pre-tax profits of £0.5 million.

Macfarlane CEO 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.”