UK-based Macfarlane Group is set to buy polythene manufacturer Edward McNeil’s packaging business.

With the deal, Macfarlane aims to expand its packaging distribution business in the UK’s protective packaging market.

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The company will pay up to £1.8m for the business, with the deferred consideration of £0.15m payable in the next twelve months, based on certain working capital targets.

Based in Glasgow, Scotland, Edward McNeil currently employs 12 people and generated sales of £3.6m in 2015.

"The business has a good team, who will complement the Macfarlane Packaging Distribution business based in Linwood and strengthen Macfarlane’s presence in Scotland."

Macfarlane chief executive Peter Atkinson said: "Edward McNeil is a successful business with a high quality customer base who benefit from excellent customer service levels.

"The business has a good team, who will complement the Macfarlane Packaging Distribution business based in Linwood and strengthen Macfarlane’s presence in Scotland."

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Macfarlane has three businesses and employs more than 780 people at 29 sites, mainly in the UK and Ireland.

The businesses include Macfarlane Packaging, a distributor of protective packaging, and Packaging Design and Manufacture, which specialises in packaging for high-value, fragile products.

Macfarlane provides services to several industry sectors including consumer goods, food manufacturing, logistics, internet retail, mail order, electronics, defence and aerospace.

Last month, Macfarlane confirmed its acquisition of Colton Packaging Teesside, which is a regional distributor of protective packaging materials.