News

Macfarlane Group has bought Online Packaging for around £5m, underlining its ambitions to grow its packaging distribution business.

The Glasgow-based packaging distributor and manufacturer said in a trading update before Christmas 2007 that it was seeking "value-enhancing" acquisitions.

Online Packaging, a supplier of industrial packaging materials based at Waterwells Business Park in Gloucester, was set up in 1990. It now employs 38 staff and operates from three distribution centres in Gloucester, Wakefield and Hinckley.

The firm's main products are corrugated cases, polythene products, stretch and shrink film, postal packaging, adhesive tapes and strapping.

Online's management team, including managing director Chris Hutchens and commercial director Tim Nixon, will remain with the business.

Online Packaging made a pre-tax profit of £528,439 on a turnover of £7.5m in the year to 31 August 2007. Gross and net assets in the period were £3.8m and £1m respectively.

Macfarlane said Online Packaging complemented its existing packaging distribution activities in the UK, particularly in the South West and in Yorkshire.

Chief executive Peter Atkinson said Online Packaging was a "successful company" and was "delighted" that the management team would remain with the business.

"We look forward to the experience and value they will bring to the Macfarlane Group," he said.