Scotland-based packaging and label company Macfarlane Group has acquired UK-based Colton Packaging Teesside.
Under the terms of the agreement, the company will acquire the Teesside branch of Colton Packaging for £1.25m.
The Colton Packaging Teesside will transfer its employees to Macfarlane, as part of the deal.
Macfarlane CEO 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 strengthens Macfarlane's presence in the north east of England."
The move is believed to be part of the company's strategy to bolster its packaging distribution business.
Located in Thornaby near Middlesbrough, Colton Packaging Teesside is the northeast branch for the protective packaging distributor, which generated sales of approximately £3m last year.
In August 2015, Macfarlane acquired UK-based distributor One Packaging at £2.75m, after its £7.5m purchase of Network Packaging in September 2014.
Headquartered in Glasgow, Scotland, Macfarlane employs more than 730 people across 25 sites, principally in the UK and Ireland.
The company's Macfarlane packaging business distributes a range of protective packaging products and prints quality self-adhesive and re-sealable labels, principally for FMCG companies.