Packaging firm Macfarlane Group has acquired Colton Packaging Teesside in deal worth up to £1.25 million.
Glasgow-based Macfarlane Group said Colton Packaging Teesside, the North East branch of Colton Packaging Ltd, currently has eight employees and generated circa £3 million in sales last year.
The deal will see Macfarlane pay an initial consideration of £1.05 million and a further £200,000 “assuming key financial objectives are achieved”.
Both the initial and deferred consideration will be paid from existing borrowing facilities.
Macfarlane Group 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.”
In February Macfarlane Group reported a 20 per cent increase in profits to £6.8 million for the 2015 year to December 31 as turnover rose almost 10 per cent to £169.1 million on a “strong trading performance”.
Shares in main market-listed Macfarlane Group were down 1.9 per cent in early Tuesday trading.
Source : dailyrecord.co.uk