4th Jan 2022 14:26
(Alliance News) - Macfarlane Group PLC announced on Tuesday the sale of Macfarlane Labels Ltd and its subsidiaries, Macfarlane Group Ireland Ltd and Macfarlane Group Sweden AB.
The Glasgow-based packaging and label company said that Macfarlane Labels was being acquired The Reflex Group Ltd for GBP6.4 million.
Macfarlane said the price was "broadly" align with net asset value and added that 95% of the consideration was paid on completion.
The Reflex Group is a Mansfield-based company focused on the manufacture of labels and flexible packaging with revenue of GBP135 million.
Macfarlane Labels designs and prints self-adhesive and resealable labels, principally for fast-moving consumer goods companies.
Macfarlane said the proceeds from the sale will be invested in the growth of its protective packaging business.
In 2020, Macfarlane Labels generated GBP300,000 in pretax profit and had gross assets of GBP15.1 million at December 31, 2020.
Shares in Macfarlane were up 3.3% at 134.24 pence on Tuesday afternoon in London.
By Heather Rydings; [email protected]
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