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Macfarlane Group PLC (MACF)

Macfarlane Group PLC

Macfarlane Group PLC
4 July 2002

                         MACFARLANE GROUP PLC ACQUIRES


Macfarlane Group PLC ('Macfarlane') has agreed to acquire today Tom Brands
Electrical Services Limited ('Brands'), for an initial consideration of £2.0
million, with deferred consideration of £0.6 million and contingent
consideration of up to £6.0 million based on Brands' trading performance in the
next three calendar years. The acquisition will be funded from Macfarlane's
existing bank facilities. The Directors of Macfarlane are confident that this
acquisition is capable of delivering value to Macfarlane shareholders by
combining the product offering from both Macfarlane and Brands to common

The principal activity of Brands is now the provision of supply chain management
and vendor management services to major international customers from its base in
Gourock in Scotland and facilities in the United States and Mexico, using
sophisticated web-based management tools for stock and customer relationship
management activities. Since the middle of 2001 Brands has been realigning its
product and service offerings, while eliminating unprofitable contracts and
activities with a value in excess of £40m to more appropriately meet major
customers' key requirements to outsource non-core activities.

In the year to 31 October 2001 Brands had annual turnover of £59.4 million and a
loss before taxation of £1.3 million. The net assets being acquired are
estimated to be £0.5 million, which includes debt of £2.5 million.

Iain Duffin, Chief Executive of Macfarlane Group PLC, said today:

'I am delighted that we have acquired Brands. This acquisition supports our
strategy to provide a range of outsourcing services to key customers. Together
Brands and Macfarlane will meet the requirements of major customers who continue
to seek out supply partners who can demonstrate a capability to meet their
continuing outsourcing needs globally. This is particularly true in current
markets when major customers are seeking to focus on their core activities and
outsource a larger number of service-based activities to key supply partners.

It is a comfortable fit because Brands and Macfarlane have a similar customer
base and approach to customer service. We can now offer these customers not just
packaging solutions but a much wider range of services in the UK, North and
South America and Europe. I welcome Douglas and Tom Brands and their team to
Macfarlane Group and look forward to the benefits that their contribution will
undoubtedly bring.'

Further information:
Iain Duffin            Chief Executive, Macfarlane Group           0141 333 9666

Gordon Beattie         Beattie Media                                07768 588163

                      This information is provided by RNS
            The company news service from the London Stock Exchange
Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

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