BRUSSELS, Belgium, Jan. 16, 2020 (Fastmarkets RISI) -Macfarlane Group, a UK distributor of protective packaging, has bought the business of Teesside-based Armagrip, a protective packaging distribution business operating mainly in the industrial sector in the north of England.
Macfarlane acquired the inventory and goodwill of the business for an undisclosed sum.
The firm said in a statement the buy was in line with its strategy of building the business through a combination of organic and acquisitive growth.
Armagrip has eight employees, all of whom will transfer across to Macfarlane. Macfarlane employs over 925 people at 30 sites, principally in the UK, but also in Ireland and Sweden. The group has 20,000 customers in the UK, Europe and the USA and provides 600,000 lines to a range of industry sectors. Operating from a base in Chilton, Durham, the company noted sales revenue of £1.6 million ($2.1 million) in 2019.
A company spokesperson said Macfarlane Group has a two-pronged strategy of organic and acquisitive growth, with Armagrip Macfarlane’s third acquisition in the last 12 months. The firm’s strategy is to acquire high-quality protective packaging distribution businesses that provide geographic infill or add new products to their portfolio – or both, the spokesperson said, adding that it has funded acquisitions through rights issues or its existing banking facility.