GWP Holdings Limited the owner of GWP Group Limited, the protective packaging manufacturing and distribution business based near Swindon, has been sold to a subsidiary of Glasgow-based Macfarlane Group plc.
The acquisition is in line with Macfarlane’s declared strategy of building its protective packaging business through a combination of organic and acquisitive growth.
Macfarlane’s wholly-owned subsidiary, Macfarlane Group UK Limited, has acquired GWP for £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
GWP supplies customers across the UK but mainly within the South West of England from its manufacturing facilities in Salisbury and Swindon. There are significant opportunities for both GWP and Macfarlane to benefit from access to their respective ranges of protective packaging products and services. The business has an experienced team of 107 employees, including its six Directors. Five of the Directors will remain with the company following its acquisition.
Peter Atkinson, Chief Executive of Macfarlane, 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.”
Macfarlane Group supplies more than 20,000 customers in the UK, Europe and the USA. In partnership with 1,700 suppliers, Macfarlane Group distributes and manufactures 600,000+ lines across a wide range of sectors, including: retail e-commerce; consumer goods; food; logistics; mail order; electronics; defence, automotive and aerospace.
Macfarlane was founded around 70 years ago and listed on the main London Stock Exchange market in 1973 With annual sales of around £225 million, it has 925 employees.