Macfarlane Group UK has purchased 100% of protective packaging distribution business Ecopac UK for a total consideration of £3.9m.
The transaction is part of the group’s strategy to establish the business through acquisitions and organic growth. The total value of the deal includes an earn-out of £800,000.
Ecopac offers a range of products, including corrugated cases, tapes, void fill, cushioning materials, bubble wrap, plastic sheets, bags and sacks, postal products, pallet wrap, and ancillary products.
The company operates 60,000ft² of facilities near Aylesbury to serve its customers.
The deal gives Ecopac access to Macfarlane’s extended range of protective packaging products and services.
Macfarlane CEO Peter Atkinson said: “Ecopac is a well-run, profitable packaging business that meets our strict acquisition criteria and will be earnings-enhancing in its first full year in the Group.
“I am confident that the business will prove to be an excellent acquisition improving our geographic penetration and extending our customer reach.”
Following the completion of the transaction, Macfarlane will also retain 21 Ecopac employees to continue with the business.
The deal is the latest in a series of acquisitions made by Macfarlane within the last couple of years.
Macfarlane acquired two Nottingham firms for up to £16.75m in September 2017 and later purchased Tyler Packaging and Harrisons Packaging in Lancashire in August last year.
Headquartered in Scotland, Macfarlane Group comprises various businesses, including Macfarlane Packaging, Labels, as well as Packaging Design and Manufacture.
The group currently employs more than 900 people across 30 production facilities in the UK, Ireland, and Sweden.