Macfarlane Group to purchase East Midlands packaging firm for up to £6.75 million

Scottish packaging business Macfarlane Group has conditionally aquired Nelsons for Cartons and Packaging Limited for up to £6.75 million in conjunction with a proposed placing to raise approximately £5.8 million before expenses.

East Midlands based Nelsons is a long standing packaging distributor located in Leicester with good access throughout the Midlands region and has very little customer overlap with Macfarlane and the Directors believe Nelsons will provide access to new customers and will increase the Company’s shelf ready packaging (“SRP”) product range.

Nelsons is a profitable and cash generating business. During the financial year ended 31 December 2015, Nelsons achieved revenues of approximately £7.9 million, EBITDA of approximately £0.9 million and an operating profit of approximately £0.8 million.

Macfarlane Group intends to fund the Nelsons acquisition by raising £5.8 million before expenses through the Placing of up to 10,000,000 new Ordinary Shares (“Placing Shares”) at a price not less than 58 pence per share with new and existing shareholders.

Macfarlane’s Chief Executive, Peter Atkinson commented:

“The addition of Nelsons Packaging to the Macfarlane Group is another significant step forward in our growth strategy. Nelsons is a high quality business and in addition to improving the Macfarlane presence in the East Midlands, the Nelson team bring specific expertise in corrugate packaging applications which will be of wider benefit to Macfarlane.”