UK-based distributor of protective packaging materials Macfarlane has acquired the entire issued share capital of Network Packaging for about £7.5m.
The company has also conditionally raised £3m by placing 8,000,000 shares at 37.5 pence per placing share with institutional investors.
According to the company, of the initial consideration of £4.9m, £4.3m will be paid in cash and £0.6m will be settled by the issue of ordinary shares.
With the aim of following its strategy of future growth in the UK packaging distribution sector, Macfarlane has made a number of acquisitions including the acquisition of PSD Industrial Holdings which is the parent company of Lane Packaging.
Established in 1997, Network Packaging made a profit of £0.8m on turnover of £7.8m in 2013.
Speaking about the acquisition, Macfarlane chief executive Peter Atkinson said, "The Board is very pleased with the high level of support being shown for its strategy by both new and existing institutional shareholders. The successful acquisition of Lane Packaging earlier this year demonstrates our ability to identify, complete and integrate acquisitions effectively.
"Network Packaging is a successful company and today's acquisition demonstrates our continuing commitment to the strategy of developing our UK Packaging Distribution business. We are delighted that the Network Packaging management team will remain with the business. They will add to our management capability and their experience in the third-party logistics sector and internet retail will complement the existing Macfarlane strengths in these market sectors."
