Macfarlane Group, the Glasgow-based packaging, design and distribution firm, announced the acquisition of Leighton Buzzard-based Polyformes Limited for up to £11.5 million in cash, including an earn-out of up to £4.8 million over two years.
“This earnings-enhancing acquisition demonstrates further progress in our strategy to build the group’s protective packaging business through a combination of organic and acquisitive growth,” said Macfarlane.
Founded in 1977, Polyformes designs and converts foam primarily for specialist protective packaging applications supplying to customers in the aerospace, medical, defence and industrial sectors, throughout the UK.
Polyformes has 60 employees, including its three directors, who will all remain with the group following the acquisition.
“There are significant opportunities for both Polyformes and Macfarlane to benefit from access to their respective industry expertise, ranges of bespoke protective packaging products and common supplier base,” said Macfarlane.
“For the year ended 31 December 2023, Polyformes generated sales of £9.3 million, with EBITDA of £1.5 million and pre-tax profits of £1.4 million.”
“We look forward to working with the team at Polyformes to support its continued growth and develop opportunities for us to work together to provide our customers with a broader portfolio of protective packaging solutions.”
Macfarlane Group employs over 1,000 people at 40 sites, principally in the UK, as well as in Ireland, Germany and the Netherlands. The Glasgow firm supplies more than 20,000 customers, principally in the UK and Europe.