(Sharecast News) - Packaging and label company Macfarlane has bought Buckinghamshire-based protective packaging distribution business Ecopac for up to £3.9m in cash.
The group said the deal was in line with its strategy of building the business through a combination of organic and acquisitive growth.
The acquisition was made through Macfarlane's wholly-owned subsidiary, Macfarlane Group UK Limited.
In the year to the end of March 2018, Ecopac - which focuses mainly on customers within a close radius of its facilities near Aylesbury - generated sales of £6m and pre-tax profits of £0.5m.
Macfarlane said all of Ecopac's 21 employees will remain with the business after the acquisition.
Chief executive Peter Atkinson said: "Ecopac is a well-run, profitable packaging business that meets our strict acquisition criteria and will be earnings-enhancing in its first full year in the group. I am confident that the business will prove to be an excellent acquisition improving our geographic penetration and extending our customer reach."
1345 BST, the shares were up 1.7% at 103.50p.