3 May 2016 – acquisition
Packaging group Macfarlane has expanded its activities with the acquisition of Edward Mcneil Limited, a Glasgow based distributor of protective packaging materials. The business, which generated revenues of £3.6m in 2015, is being acquired for up to £1.8m in cash. This acquisition is in line with the group’s strategy of making bolt-on acquisitions to strengthen its market position. Although this looks a sensible move the shares in the company have enjoyed a strong run and we therefore reduce our recommendation to HOLD.