LONDON (ShareCast) - (Sharecast News) - Scottish packaging firm Macfarlane Group announced on Monday it is spending £11.5m to buy foam specialist Polyformes.
The deal, which includes an earn-out of up to £4.8m based on profit targets over two years, is part of Macfarlane's "buy-and-build" strategy.

"This earnings-enhancing acquisition demonstrates further progress in our strategy to build the group's protective packaging business through a combination of organic and acquisitive growth," the company said in a statement.

Founded in 1977, Polyformes makes foam protective packaging for UK customers in the aerospace, medical, defence and industrial sectors.

Macfarlane will take on its 60 employees, including management, and expects both sides to benefit from respectiev industry expertise and common supplier base.

The deal is will be financed from existing bank facilities.

"Polyformes is a profitable, growing, well invested company with an experienced management team that is fully committed to the business," said chief executive Peter Atkinson.

"We look forward to working with the team at Polyformes to support its continued growth and develop opportunities for us to work together to provide our customers with a broader portfolio of protective packaging solutions."

Macfarlane's shares were up 1.7% at 119p by 0952 BST.

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