UK-based packaging and label company Macfarlane Group has expanded its protective packaging distribution operations in Northern Europe by acquiring PackMann Gesellschaft für Verpackungen und Dienstleistungen.

As part of the deal, Macfarlane acquired 100% of PackMann for a maximum cash consideration of €8.625m ($9.08m).

Based near Heidelberg, Germany, PackMann supplies protective packaging to customers across Germany and neighbouring countries.

The company has 112 employees, including its founder and director Frank Westermann and director Volker Thorn.

It generated sales of €12.8m and recorded a pre-tax profit of €0.8m for the 12 months to 31 December 2021.

The acquisition is in line with Macfarlane’s strategy to strengthen its protective packaging business in Northern Europe by integrating organic and acquisitive growth.

It will give both companies’ customers access to more protective packaging products and services.

Westermann and Thorn will both remain with PackMann after the deal has closed.

Macfarlane chief executive Peter Atkinson said: “PackMann is Macfarlane’s first acquisition outside the UK in recent years and I am delighted that we have secured this excellent business with its strong history of profitability and an experienced management team.

“This transaction strengthens our ‘Follow the Customer’ strategy, giving us a solid platform from which to accelerate the growth of our protective packaging business in Northern Europe.”

Based in Glasgow, Macfarlane supplies protective packaging products via its network of 36 sites across the UK, Ireland and the Netherlands.

The company manufactures and distributes more than 600,000 lines across a wide range of sectors, including retail e-commerce, consumer goods, food, logistics, mail order, electronics, defence, automotive and aerospace.

In January this year, Macfarlane sold its labels division, Macfarlane Labels, to The Reflex Group for a £6.4m ($8.6m) consideration.

The Macfarlane Labels division includes Macfarlane Labels, Macfarlane Group Ireland (Labels & Packaging) and Macfarlane Group Sweden.