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Colton Packaging Teesside acquired in £1.25m deal

Middlesbrough-based Colton Packaging Teesside, the North East branch of packaging company Colton Packaging Limited, has been acquired in a £1.25m deal by Macfarlane Group PLC.

Established for 20 years, the Thornaby-based firm currently has 8 employees and generated sales of c£3.0m last year. Glasgow-headquartered packagers Macfarlane made the purchase in line with its strategy to develop its Packaging Distribution business in the UK protective packaging market.

Parent firm Colton Packaging Limited, a regional distributor of protective packaging materials based in Leicester, will receive up to £1.25m for Colton Packaging Teesside assuming key financial objectives are achieved in the 12-month period post-acquisition.

Both the initial consideration of £1.05m and the deferred consideration of £0.20m will be paid from existing borrowing facilities.

Peter Atkinson, Chief Executive of Macfarlane, said: “Colton Packaging Teesside is a high quality business with a good team of people who will complement the Macfarlane Packaging Distribution business based in Newcastle and strengthen Macfarlane’s presence in the North East of England.”

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