By Scott Wright

MACFARLANE Group has made a major breakthrough in its long-standing ambition to break into northern Europe by acquiring a German packaging firm.

The Glasgow-based packaging company, which once had a global presence running from “Milngavie to Mexico”, has taken over German firm PackMann in a deal worth up to €8.6 million. It is Macfarlane’s first acquisition outside the UK since its labels business bought Reseal-it, which operated in Ireland and Sweden, in 2000. Macfarlane sold its labels business on December 31.

PackMann, which is based in Eppelheim near Heidelberg, was established nearly 28 years ago, and supplies customers across Germany and neighbouring countries. The company’s 112-strong team, including founder Frank Westermann and fellow director Volker Thorn, will remain with the company further to the acquisition.

Macfarlane said there will be opportunities for customers of both companies to access their respective ranges of protective packaging products and services.

Macfarlane chief executive Peter Atkinson said: “PackMann is Macfarlane’s first acquisition outside the UK in recent years and I am delighted that we have secured this excellent business with its strong history of profitability and an experienced management team. This transaction strengthens our Follow the Customer strategy, giving us a solid platform from which to accelerate the growth of our protective packaging business in northern Europe.”

Macfarlane began life as a commercial stationer when it was founded by the late Lord Macfarlane of Bearsden in 1943. In the decades that followed, it diversified and built up a global presence, going on to own electronics-focused manufacturing units in the US and Hungary. Those were sold in 2006 and 2007. After taking the helm in 2003, Mr Atkinson narrowed the company’s focus and international footprint. Shares in Macfarlane closed down 2p at 118p.