SCOTTISH-based Macfarlane Group PLC, the UK’s largest distributor of protective packaging, started 2022 with the announcement of the sale of its Labels Division to labels and flexible packaging specialist, The Reflex Group Limited. Macfarlane Labels designs and prints high quality self-adhesive and resealable labels, principally for FMCG companies. The sale, for a consideration of £6.4m, was completed on 31st December 2021.
The Reflex Group Limited (“Reflex”) is a well-established privately owned company, focused on the manufacture of labels and flexible packaging, with revenues of £135m and over 800 employees, primarily in the United Kingdom.
For the year ended 31 December 2020, Macfarlane Labels generated profit before tax of £0.3m, and as at 31 December 2020 had gross assets of £15.1m. Macfarlane Labels employs 109 employees who will remain in the business after the sale.
The proceeds from the sale will be strategically invested in the continuing growth of Macfarlane’s protective packaging businesses.
Peter Atkinson, Chief Executive of Macfarlane, said:
“Macfarlane Labels has been a long-standing part of the Group. We believe that its sale to Reflex, with their well-established position and scale in the labels market, creates the best opportunity for Macfarlane Labels to develop.
“The sale will allow the Group to focus resources on growing our protective packaging businesses both in the UK and Europe.”
