UK-based packaging company Macfarlane Group has agreed to acquire Leicester based Nelsons for Cartons and Packaging (Nelsons) for a maximum of £6.75m.
The deal, which is subject to certain trading conditions, is part of Macfarlane’s plans to strengthen its packaging distribution business in the UK protective and shelf ready packaging (SRP) markets.
Macfarlane chief executive Peter Atkinson said: "The addition of Nelsons Packaging to the Macfarlane Group is another significant step forward in our growth strategy.
“Nelsons is a high-quality business and in addition to improving the Macfarlane presence in the East Midlands, the Nelson team bring specific expertise in corrugate packaging applications which will be of wider benefit to Macfarlane.”
Nelsons provides products ranging from corrugated boxes to aluminum foils, from plastic bags to tape, from bubble wrap to stretch film.
During the financial year ending 31 December 2015, the company recorded revenues of around £7.9mand an operating profit of nearly £0.8m.
The deal follows Macfarlane’s acquisition of packaging business of Edward McNeil for £2m.
Glasgow-headquartered Macfarlane has three business segments. The company employs more than 780 people at 29 sites, principally in the UK and Ireland.
Macfarlane Packaging distributes a range of protective packaging products in the UK, while its labels division is engaged in designing and printing self-adhesive and resealable labels, primarily for FMCG companies.
Packaging design and manufacturing division produces protective packaging for high value and fragile products.