Carters Packaging Limited, the owner of Carters Packaging Limited in Cornwall have been acquired by Macfarlane Group PLC.

The Redruth-based packaging company has become one of the leading distributors of protective packaging in the South-West of England and has an experienced team of 25 employees, including its two directors.

Macfarlane Group UK Limited has acquired 100% of Carters for a maximum cash consideration of £4.5 million (including an earn-out over two years of £1.5 million) and will look to retain all staff currently within the business following the acquisition.

The firms said the expected net assets on completion were £0.9 million, with the consideration to be financed through the Group's recently extended £30 million bank facility.

Carters focuses principally on customers within Cornwall and Devon and its 25,000 sq.ft. facility in Redruth will now benefit from access to Macfarlane’s extended range of protective packaging products and services.

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Peter Atkinson, Chief Executive of Macfarlane, said: "Carters is a well-run, successful protective packaging distributor that meets our strict acquisition criteria and its acquisition will be earnings-enhancing in its first full year in the Group.

"I am confident that the business will prove to be an excellent acquisition improving our geographic penetration and extending our customer reach in the South West of England."

Headquartered in Glasgow, Scotland, Macfarlane Group employs over 950 people at 33 sites, principally in the UK, as well as in Ireland, Sweden and the Netherlands and supplies more than 20,000 customers in the UK, Europe and the USA.

Carters Packaging Ltd has itself been a growing player in the packaging game and, since year ended March 31 2020, has generated sales of £4.2 million and pre-tax profits of £0.5 million.

Barny Carter, one of the directors of Carters Packaging, said: "Carters Packaging Ltd are delighted to announce their acquisition by Macfarlane Group. 

"Already Cornwall’s largest packaging supplier, the transaction will allow CPL to continue to evolve both inside and outside of Cornwall. 

"In such uncertain times, Macfarlane’s considerable investment in CPL reflects the strong performance of CPL and the belief they hold in the company, and is good news for CPL’s employees, customers and suppliers."