Macfarlane Group has acquired fellow Glasgow-based packaging firm Edward McNeil Ltd in a deal worth up to £1.8 million.
Edward McNeil is an established regional distributor of protective packaging materials which has been trading for more than 50 years.
The company employs 12 staff and generated sales of around £3.6 million in the 2015 year to December.
Macfarlane said the £1.8 million acquisition includes a £150,000 deferred consideration which is payable in the next twelve months, based on certain working capital targets.
The acquisition will be funded from existing borrowing facilities.
Peter Atkinson, Chief Executive of Macfarlane said: “Edward NcNeil is a successful business with a high quality customer base who benefit from excellent customer service levels.
“The business has a good team, who will complement the Macfarlane Packaging Distribution business based in Linwood and strengthen Macfarlane's presence in Scotland.”
Samuel Kingsley, managing director of Edward McNeil, added: “I am delighted that our packaging business has been acquired by Macfarlane.
“The acquisition will create opportunities to develop the business in the coming years.”
Macfarlane Group noted in full-year results it had extended existing banking facilities with Lloyds Banking Group to £25 million to support acquisitions and working capital requirements.
The group has the option to increase the facility to £30 million in the period to June 2019.
Shares in Macfarlane Group were down 0.7 per cent in early Tuesday trading.
Source : dailyrecord.co.uk