Macfarlane Group set to buy Leicester packaging firm
Glasgow-based Macfarlane Group is poised to make another acquisition in England as its continues to expand its packaging distribution business.
Macfarlane has conditionally agreed to buy Leicester-based Nelsons for Cartons and Packaging Ltd in a deal worth up to £6.75m.
Macfarlane intends to raise £5.8m through a placing in order to fund the deal.
In April, the group acquired Colton Packaging Teesside for up to £1.25m.
Colton was part of Colton Packaging, an established regional distributor of protective packaging materials.
Last year, Nelsons achieved revenues of about £7.9m, with an operating profit of about £800,000.
In a statement, Macfarlane said it had "very little customer overlap" with Nelsons, adding that the deal would increase its shelf-ready packaging product range.
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."