LONDON (ShareCast) - (Sharecast News) - Macfarlane said on Tuesday that it has sold its specialist labels business to Reflex for £6.4m.
Reflex is a privately-owned company focused on the manufacture of labels and flexible packaging, with revenues of £135m and more than 800 employees, primarily in the United Kingdom.

Macfarlane said the price paid for the business "will broadly align with net asset value". It added that 95% of the consideration was paid on completion with the balance payable within three months.

For the year ended 31 December 2020, Macfarlane Labels generated pre-tax profit of £0.3m and as at 31 December, it had gross assets of £15.1m. The business employs 109 employees who will stay on after the sale.

The proceeds from the sale will be strategically invested in the continuing growth of the protective packaging businesses.

Chief executive Peter Atkinson 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."

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