Macfarlane Group bolsters portfolio with acquisition of protective packaging distributor Gottlieb

UK – Glasgow-based supplier of protective packaging products Macfarlane Group has announced the acquisition of protective packaging supplier Gottlieb Packaging Materials (Gottlieb).

The transaction is valued at £3.55 million (US$4.43m), which includes an earn-out of up to £800,000 (US$1m) subject to the agreed profit growth targets over two years.

Based in Manchester, Gottlieb specializes in providing protective packaging products to customers across a wide range of sectors.

The company reported total sales of £4.5 million (US$5.65m) and earnings before interest, taxes, depreciation and amortization and pre-tax profits of £700,000 (US$879,228) in the fiscal year ending 31 December 2022.

Gottlieb operates warehouse facilities in Manchester and employs a small team of 15 people, including two directors.

The acquisition highlights Macfarlane’s strategy to expand its protective packaging business through an organic acquisition strategy to naturally enhance its stakeholders’ value.

Meanwhile, Gottlieb’s customers will also benefit from the deal through Macfarlane’s range of protective packaging products and services.

Macfarlane CEO Peter Atkinson said: “Gottlieb is a well-run, successful protective packaging distributor with an experienced management team.

“The acquisition of Gottlieb complements the recent opening of our new distribution facility in Heywood and further strengthens our ability to serve customers in the North-West of England. We look forward to working with the team at Gottlieb to support its continued growth.”

The acquisition of Gottlieb comes shortly after Macfarlane clinched a deal to buy Cambridgeshire-based AE Sutton, a specialist protective manufacturing business founded in 1962, in a deal worth up to £9 million (US$11.30m) in March.

The acquisition aligns with Macfarlane’s strategy to develop its protective packaging business through a combination of organic and acquisitive growth.

The deal is also expected to help both parties by accessing each other’s industry expertise, ranges of bespoke protective packaging products and common supplier base.

Under the terms of the acquisition, two directors from Suttons’ team of 55 employees will remain with the Group upon completion of the deal.

More recently, the company opened its second packaging Innovation Lab at its flagship Northwest Regional Distribution Centre in Heywood, near Manchester.

Macfarlane says that the lab, which is 465sqm, “is fully equipped to create solutions for the most demanding packaging challenges and fully test them to ensure they can withstand the rigors of supply chain handling”.

With an investment of £1.3m, the lab is equipped with various capabilities that will support the development of new solutions to address the ‘most demanding’ packaging challenges.

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