Macfarlane Group buys Colton Packaging Teesside
Macfarlane Group has continued to expand its packaging distribution business by buying a north of England firm.
The Glasgow-based company said it had acquired Colton Packaging Teesside in a deal worth up to £1.25m.
Colton was part of Colton Packaging, an established regional distributor of protective packaging materials based in Leicester.
Last year the Teesside operation generated sales of about £3m.
Macfarlane is paying an initial sum of just over £1m for Colton, which is based in Thornaby near Middlesbrough. It will pay a further £200,000 if Colton achieves "key financial objectives" in the 12 months following the acquisition.
Macfarlane has made several acquisitions in recent years in an effort to expand its packaging distribution offering.
In 2014, it bought Network Packaging and Lane Packaging, and last August it acquired Nottingham-based One Packaging Ltd.
Macfarlane chief executive Peter Atkinson said: "Colton Packaging Teesside is a high quality business with a good team of people who will complement the Macfarlane Packaging Distribution business based in Newcastle and strengthen Macfarlane's presence in the north east of England."
Macfarlane Group currently employs more than 750 people at 28 sites, mainly in the UK and Ireland.