Glasgow's Macfarlane Group to expand reach in England
Macfarlane Group, the Glasgow-based packaging business, is embarking on a share placing to raise almost £6 million to help fund a new acquisition.
The firm is paying up to £6.75m to buy Leicester-based Nelsons for Cartons and Packaging Limited.
The move is in line with Macfarlane’s strategy to develop its packaging distribution business in the UK protective packaging market.
According to today’s statement from the Scots group, Nelsons is a long-standing packaging distributor located in Leicester with good access throughout the Midlands region. There is also said to be “very little” customer overlap between the two companies.
Macfarlane intends to raise £5.8m before expenses through the placing.
Chief executive Peter Atkinson said: “The addition of Nelsons Packaging to the Macfarlane Group is another significant step forward in our growth strategy.
“Nelsons is a high quality business and in addition to improving the Macfarlane presence in the East Midlands, the Nelson team bring specific expertise in corrugate packaging applications which will be of wider benefit to Macfarlane.”