News

Macfarlane Group has bought Allpoint Packaging to increase the geographical reach of its distribution business.

Chief executive Peter Atkinson said Allpoint's locations would help serve customers in London and the Thames Valley, while Macfarlane's broader customer base could also benefit from Allpoint's supply line to the Far East.

"For us, the fact that Allpoint already sources from China could present some interesting opportunities," he said.

Atkinson confirmed that Macfarlane's investment focus remained the distribution business and it is currently working on a couple of acquisitions in Scotland that would most likely be completed next year.

He added that the company was trying "not to get too down" about the current economic climate. "Packaging is still a huge market and customers are still looking for good ideas."

Macfarlane is funding the £4.8m Allpoint takeover through existing debt facilities, £3.2m will be paid immediately and up to £1.6m in the final quarter of next year subject to trading targets being met.

Allpoint was set up in 1995 and made an operating profit of £600,000, on a £7m turnover, in the last financial year.