Macfarlane Group UK has acquired protective packaging distribution business Ecopac (UK) for a cash consideration of £3.9m.
Based in Aylesbury of Buckinghamshire, Ecopac (UK) supplies a range of products, including corrugated cases, tapes, void fill, cushioning materials, bubble wrap, plastic sheets, bags and sacks, postal products, pallet wrap, protective foam, pallet boxes, dispensers, applicators, packing machines and ancillary products.
Ecopac protective covers are reusable packaging and transit solutions, which can be used for large bulky items such as upholstered furniture, mattresses, and white goods.
Macfarlane said that the acquisition is in line with the firm’s declared strategy of building the business through a combination of organic and acquisitive growth.
Ecopac reported sales of £6m and pre-tax profits of £0.5m in the year in the 2018 fiscal year.
Ecopac serves its customers through 60,000ft² facilities near Aylesbury, and is believed to benefit from access to Macfarlane’s expanded range of protective packaging products and services.
Upon completion of the deal, the 21 employees of Ecopac will join Macfarlane to remain with the business.
Macfarlane chief executive Peter Atkinson said: “Ecopac is a well-run, profitable packaging business that meets our strict acquisition criteriaand will be earnings-enhancing in its first full year in the Group.
“I am confident that the businesswill prove to be an excellent acquisition improving our geographic penetrationand extending our customer reach.”
Based in Glasgow of Scotland, Macfarlane operates businesses, including Macfarlane Packaging, labels division, and packaging design and manufacture division.
Macfarlane Packaging is involved in the distribution of a range of protective packaging products to the UK customers, while labels division is involved in the designing and printing of self-adhesive and resealable labels for FMCG companies.
The packaging design and manufacture division is engaged in the designing and manufacturing of protective packaging for high value and fragile products.
With 30 sites, Macfarlane Group employs more than 900 people in the UK, Ireland and Sweden. The company serves a range of customers in different industry sectors, including consumer goods, food manufacturing, logistics internet retail mail order, electronics defence and aerospace.